Groupon Inc. (NASDAQ: GRPN) announced a restructuring plan that will eliminate up to 400 positions globally as the company transitions to an AI-focused business model.

The board of directors approved the plan on May 21, 2026, with most job reductions expected by the end of the third quarter. The cuts will affect both employees and contractors, though timing remains subject to local legal requirements and consultation processes in certain jurisdictions.

The company estimates restructuring charges of $7 million to $13 million, primarily for employee severance and compensation benefits. The workforce reduction is projected to generate $20 million to $25 million in annual cost savings.

Groupon expects to realize $10 million to $12 million in gross savings during 2026, with plans to reinvest up to 50% of those savings in marketing, AI infrastructure, and talent development. The net savings for fiscal year 2026 are estimated at approximately $5 million.

The company is evaluating additional cost-reduction and automation measures under "Project Foundry," which would require board approval and be completed by the end of 2027.

Groupon raised its full-year adjusted EBITDA guidance from a range of $70 million to $75 million to $75 million to $80 million. The company plans to exclude restructuring charges from non-GAAP financial metrics.

Separately, Chief Operating Officer Jiri Ponrt announced his resignation effective July 10, 2026. The company stated his departure is unrelated to any disagreement and he will not receive severance benefits as he is resigning voluntarily.