- Groupon ( NASDAQ: GRPN ) has signed off on phase two of its restructuring plan, meaning a new round of cutting about 500 jobs.
- The stock is up 1.7% after hours.
- In an SEC filing , the company said its board approved the new phase of a plan announced in August. It will mean reducing about 500 positions globally, with the majority of those coming by the end of the second quarter.
- So far, Groupon has incurred pretax charges of about $9.6M associated with the plan, and with the second phase, it expects to add pretax charges of $10M-$20M - mostly in cash, mostly related to severance and compensation benefits.
- Those cuts are expected to result in about $70M in annual cost savings - and other non-payroll actions in the plan are expected to create another $30M in savings.
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Groupon approves new restructuring phase, will shed 500 jobs