Groupon Cuts Up to 400 Jobs in AI-Native Pivot
Groupon announced up to 400 job cuts -- nearly a quarter of its workforce -- under "Project Foundry," an AI-native pivot that deploys AI voice agents to replace the human merchant-outreach sales calls that have anchored its local-deals business since 2008.
Why Did This Happen?
Automating merchant acquisition and outreach with AI voice agents
Cutting payroll to fund the AI-native rebuild and improve profitability
Restructuring HR, customer service, and parts of the tech org around automation
Pressure to sustain a turnaround after years of declining relevance
Impact Analysis
Groupon booked $7-13 million in severance to unlock $20-25 million in annualized savings and raised its full-year 2026 adjusted EBITDA guidance; COO Jiri Ponrt resigned effective July 10. Most reductions are expected by the end of Q3 2026, and the stock rose on the news.