Groupon, stumbling; to lay off 80 workers

Nov. 10, 2012 at 9:59 AM

CHICAGO, Nov. 10 (UPI) -- Groupon Inc., the Internet deal-making firm in Chicago, said it would lay off 80 sales staff after a disappointing third quarter.

In a statement, Groupon said it was laying off the workers because the company "announced several months ago it would be using technology to increase productivity through automation."

But the announcement came the same week company shares fell sharply due to its third-quarter report, the Chicago Tribune reported.

Groupon lost nearly $3 million in the quarter with revenue that did not meet expectations.

Revenues reached $568.6 million, which topped the third quarter of 2011, when revenue was $430 million. But analysts expected the firm to earn revenue of $591 million, MarketWatch reported.

The report drove down share values 29 percent Friday to $2.76 per share, a company low that is 86 percent off the $20 per share price when the firm launched its public debut in November 2011, MarketWatch said.

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