Groupon announced plans to cut up to 400 positions, nearly a quarter of its workforce, as part of restructuring efforts to rebuild as an AI-native company. The online marketplace said it expects to record between $7 million and $13 million in pretax charges related to employee severance and compensation benefits.

Most job cuts will occur by end of the third quarter, with the company projecting $25 million in annualized cost savings. Groupon anticipates realizing $10 million to $12 million worth of savings this year and plans to reinvest about half of those funds toward marketing, artificial-intelligence infrastructure, and talent density.

The restructuring comes as Groupon lifted its full-year outlook for adjusted Ebitda, signaling confidence in its strategic pivot toward AI integration. The move reflects broader industry trends as traditional e-commerce platforms scramble to incorporate artificial intelligence capabilities to remain competitive.