Groupon cuts 400 jobs as it shifts operations toward AI systems
Groupon is eliminating up to 400 positions globally across customer service, human resources, software engineering and operations as the company restructures around AI automation. The cuts represent nearly a quarter of the company's workforce and should be completed by the end of the third quarter.
The Chicago-based online marketplace expects the restructuring to save roughly $25 million annually. The company plans to reinvest as much as half of those savings into AI infrastructure.
How Groupon plans to use AI
The restructuring extends beyond engineering teams. Groupon said it will deploy AI systems across multiple business functions:
- Identifying local merchants likely to use the platform
- Automating lead sourcing and outreach
- Supporting customer engagement workflows
- Streamlining HR and customer service operations
- Improving software engineering productivity
The company said AI agents will handle operational work end-to-end, allowing remaining employees to focus on strategy, judgment and relationship management. Groupon's spokesperson told the Chicago Tribune the company is "not fully replacing our sales team" but rather "building in AI layers."
Customer service teams face restructuring
Customer service staff will see significant changes. AI systems will increasingly handle customer engagement workflows that previously required human staff. The company did not specify how many customer service roles would be eliminated, but the function was explicitly listed among affected departments.
For those remaining in customer service, the role will likely shift toward managing complex customer issues and relationship work rather than routine inquiries.
Part of a decade-long contraction
The layoffs continue a steep workforce decline. Groupon employed more than 11,000 people at its peak but had shrunk to 1,734 employees by the end of 2025. The company's Chicago headquarters had 377 employees at year-end 2025, down from a sprawling River North office.
The company previously issued a "going concern" warning in 2023, signaling potential financial distress without operational improvements. Recent financial performance has been mixed-billings reached $1.67 billion last year, but first-quarter revenue this year remained flat year-over-year.
Management frames restructuring as forward-looking
Dusan Senkypl, Groupon's largest shareholder since 2023, is positioning the restructuring as a proactive transformation rather than cost-cutting. In May, he described the company as rebuilding itself as an "AI-native company" capable of operating at the speed required for "agentic commerce."
Groupon expects $5 million in net savings in fiscal year 2026, rising to $7.5 million the following year. The company has raised earnings guidance following the restructuring plan.
A company spokesperson acknowledged that Groupon had lagged behind previous technology transitions, including mobile and cloud computing. "The AI-native shift is happening now," the spokesperson said. "We are choosing to move while the window is open."
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