Groupon ceases PH operations

E-COMMERCE platform Groupon has shut down operations in the Philippines as part of a global streamlining program that will cut 1,100 jobs across various markets.

Groupon chief operating officer Rich Williams announced in a blog post dated Sept. 22 that the company had decided to cease operations in seven countries following its recent exit from Greece and Turkey.

Aside from the Philippines, the company is folding up operations in Morocco, Panama, Puerto Rico, Taiwan, Thailand and Uruguay.

In its Philippine website, Groupon announced: “We are sorry to inform you that as of September 22, 2015 Groupon has wound down its operations in Philippines and we are unable to offer you any deals today.”

“We saw that the investment required to bring our technology, tools and marketplace to every one of our 40+ countries isn’t commensurate with the return at this point. We believe that in order for our geographic footprint to be an even bigger advantage, we need to focus our energy and dollars on fewer countries. So, we decided to exit a number of countries where the required investment and market potential don’t align,” Williams said.

Current Groupon customers in the Philippines with any question about a current valid Groupon, or one of its merchants are advised to contact [email protected].

Chicago-based Groupon operates a marketplace that offers daily discount deals at restaurants, retailers and service providers.

Williams noted the Groupon started the ambitious process of unifying global technology platforms, tools and processes two years ago under the “one playbook initiative.” The idea was to make sure that Groupon, across all markets, was operating on the same set of principles and strategy.

Groupon is now in a position to realize the efficiencies it had been working so hard to gain, to improve the way it operates around the world and continue to channel more resources toward long-term growth, Williams said. “Practically, this means we’re taking some broad restructuring actions to better focus our resources and streamline our international operations,” he said.

Over the next several months, Williams said Groupon would thus have to let go of 1,100 positions, primarily in international deal factory and customer service.

“Let’s be clear: these are tough actions to take, especially when we believe we’re stronger than ever. We’re doing all we can to make these transitions as easy as possible, but it’s not easy to lose some great members of the Groupon family. Yet just as our business has evolved from a largely hand-managed daily deal site to a true ecommerce technology platform, our operational model has to evolve,” Williams said.

“Evolution is hard, but it’s a necessary part of our journey. It’s also part of our DNA as a company and is one of the things that will help us realize our vision of creating the daily habit in local commerce,” he said.