The voice making Groupon's sales calls may soon no longer belong to a person. The US-based deals platform, Groupon, has announced plans to cut up to 400 jobs globally as it accelerates a restructuring programme focused on artificial intelligence and automation.
The reductions represent nearly a quarter of the company's workforce and form part of Groupon's wider effort to lower costs while rebuilding its business around AI-powered systems. The company said AI voice agents are now being used to make outbound sales calls, while internal tools are increasingly automating work that previously required engineering and operational teams.
Investors reacted positively to the announcement. Groupon shares rose more than 5% on Tuesday after the company also upgraded its financial guidance for 2026.
Groupon said the restructuring plan was approved by its board on 21 May and that most of the workforce reductions are expected to be completed by the end of the third quarter. The company estimates the cuts will generate annual savings of between $20M and $25M.
According to company statements, around half of the projected savings in 2026 will be reinvested into marketing, AI infrastructure, and technical hiring. The restructuring is part of Groupon's attempt to modernise a business that has struggled to regain momentum in recent years.
LAYOFF ALERT: GROUPON 🚨GROUPON IS REPLACING ITS WORKERS WITH AI VOICE AGENTS~25% of the companyThey are now using AI to make outbound sales callsFeatures are shipping without engineers touching them.The CEO said they are rebuilding Groupon as an "AI-native company."pic.twitter.com/hQyteOaR1P
Founded in 2008, Groupon became one of the fastest-growing technology companies during the early expansion of online commerce. Its business model relied on offering heavily discounted local deals on restaurants, travel, beauty services, and entertainment experiences.
However, consumer behaviour changed over time, while competition in digital advertising and local commerce intensified. Groupon's revenues and market presence declined steadily over the past decade. The company now says automation and AI systems will become central to future operations.
Alongside the job cuts, Groupon raised its full-year adjusted EBITDA guidance to between $75M and $80M, compared with its previous forecast of $70M to $75M. The company said restructuring charges are expected to range from $7M to $13M, largely linked to severance payments and employee compensation costs.
Despite those charges, investors appeared encouraged by the company's cost-saving plans and focus on operational efficiency. Shares in Groupon climbed during Tuesday trading, reaching their highest level since November last year.
Source: International Business Times UK
