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Business News

Web dealer Groupon cuts UK jobs


Groupon is cutting its British workforce, just months after the deal-of-the-day website was found guilty of "widespread" breaches of consumer protection rules.

Most of the job cuts are understood to have been made in Groupon's customer services department. Sources said that, prior to the Office of Fair Trading investigation, Groupon's large number of customer services staff fielded complaints over what was found to often be misleading advertising.

The sources added that around 300 jobs out of what is understood to be a British workforce in the “high hundreds” were under threat. However, Groupon said that the redundancy process, which is still underway, will result in a cull of less than 5 per cent of its British employees.

Earlier this year, Groupon's UK managing director, Roy Blanga, said the company, which offers deals on anything from Jamie Oliver cutlery sets to holidays in Vienna, took the OFT's findings "very seriously".

As a result, Groupon had to introduce a number of changes to ensure that claims made on its website were fair and accurate by the summer. The Chicago-based company started a weekly log of complaints at its British arm and beefed up its compliance team.

A Groupon statement said: "Our young business is continually evolving; as it evolves, some roles are no longer required. As such, we have made a small number of redundancies. However, we are pleased that some of the individuals affected are in the process of moving to other positions within the business."