Another tech company says it will cut hundreds of jobs amid pivot to AI

Groupon announced a plan to cut up to 400 jobs, representing nearly 25% of its worldwide workforce, as part of its strategy to transform into an AI-native platform.
The layoffs are anticipated to occur over the coming months and aim to position the company to better fulfill its mission.
The tech industry has experienced a significant increase in job cuts, particularly in the U.S., since 2023, with over 800,000 layoffs recorded according to Layoffs.fyi.
Many e-commerce companies, including Groupon, are shifting to AI-based operations to automate roles and reduce costs.
Groupon estimates the layoffs will cost up to $13 million but is expected to save more than $20 million annually through AI integration.
The surge in AI-driven layoffs has intensified competition for top talent, widening the skill divide in Silicon Valley.
Despite traditional job search efforts, many unemployed tech workers are facing difficulties, leading some to take pay cuts, leave the tech industry, return to study, launch startups, or retire early.
Following the announcement, Groupon’s stock price slipped marginally by 1% to $21.20, reflecting investor concerns amidst the company’s broader restructuring efforts.

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