Groupon may be on the verge of breaking down as its share price continues to disappoint investors. The e-commerce group-buying website designed to provide discounts on various goods and services to its customers has once again seen a slip on its share yesterday while the company is facing international retreat and after it has announced layoffs.
According to Fox Business, Groupon's share slipped two percent on Tuesday, scaling back the company's aspiration to become a global player. On the same day, Groupon revealed that it's now retreating its reach from potentially promising markets of Puerto Rico, Panama, Morocco, Taiwan, the Philippines, Thailand and Uruguay.
The announcement came after it exited the markets of Turkey and Greece.
With the unfortunate news for Groupon popping up one after another, it is not surprising that investors are not pleased with the discount company.
The degradation of Groupon was already evident at the start of the year when the company's revenue reportedly stalled to 6.77 percent, as per Harm Elderman of Seeking Alpha.
As for the layoffs, it is seen as a positive move from the company that is slowly retracting its worldwide force. The 1,100 employees who will be laid off will represent 10 percent of Groupon's worldwide manpower, cutting the company's long-term expenses. However, the company is ensuring laid off workers with just severance payments and exit costs.
Meanwhile, layoffs give businesses a chance to do better at the stock market since many perceive that laying off employees would mean the company is willing to work only on the things that are working for it, thereby sending its stock higher on the market.
However, while the company is still in the struggling phase, its shares are not expected to go higher quickly. On Wednesday, the company traded as low as $3.88 with 3,483,984 shares, District of Columbia Progressive has learned.
© 2017 Jobs & Hire All rights reserved. Do not reproduce without permission.
