This is why Groupon plans to cut 1,100 jobs worldwide

Groupon Prepares For $750 Million IPO
CHICAGO, IL - JUNE 10: The Groupon logo is engraved in a glass office partition in the company's international headquarters on June 10, 2011 in Chicago, Illinois. Groupon, a local e-commerce marketplace that connects merchants and consumers by offering goods and services at a discount, announced June 2 that it had filed with the Securities and Exchange Commission for a proposed initial public offering of its Class A common stock. The company, launched in Chicago in November 2008 now markets products and services in 43 countries around the world. (Photo by Scott Olson/Getty Images)
Photograph by Scott Olson — Getty Images

Groupon is cutting 1,100 jobs worldwide as it restructures its international operations, MarketWatch reports. According to a filing with the SEC on Tuesday, the job cuts will affect almost 10% of the company’s employees.

A blog post by the company specifies that most of the 1,100 jobs will be taken from Groupon’s international Deal Factory and Customer Service divisions. Groupon (GRPN) plans to cease operations in some locations in order to focus on operating in fewer countries with higher market potential.

The cuts are expected to be completed for the most part by September of next year. Groupon plans to dole out about $35 million in cash in relation to the cuts, with most of that money going to severance pay and compensation benefits.

The company said that the savings that will come as a result of this action will be “immaterial” this year, and all savings in the years to come will mostly be reinvested in the business.

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