Groupon's share price rises as it reveals plans to cut 1,100 jobs as part of global restructure

 
Catherine Neilan
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Groupon is planning to cut 1,100 jobs as part of a global restructure of the vouchers company.
The restructure, which has been approved by Groupon's board, will cost up to $35m, of which between $22m and $24m will come into play in the third quarter of the current financial year.
“Substantially all of the pre-tax charges are expected to be paid in cash and will relate to employee severance and compensation benefits, with an immaterial amount of the charges relating to asset impairments and other exit costs,” the company said.
According to documents filed by the Chicago-based firm, the restructure will be broadly complete by September 2016.
“Any cost savings from the restructuring actions will be immaterial in 2015,” Groupon said in the document. “Cost savings in subsequent years are expected to be primarily reinvested in the business.”
Groupon's share price was expected to open up one per cent on the back of the news.
The company, which launched in 2008, listed in 2011.

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