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Groupon (GRPN) stock gained premarket on Wednesday, drawing attention after it ramped up its restructuring efforts as the longtime digital deals platform pivots toward artificial intelligence-driven operations.
In an SEC filing on Tuesday, Groupon said its board approved the initial phase of the restructuring effort on May 21 to reposition Groupon as an “AI-native” business focused on improving services for merchants and shoppers.
The Chicago-based e-commerce marketplace said the first stage of the plan could eliminate as many as 400 jobs worldwide, including contractor positions. Most of the cuts are expected to take place before the close of the fiscal third quarter.
Groupon expects the payroll reductions to generate annual savings of $20 million to $25 million once the transition is fully implemented.
The company described the initiative as part of a larger effort to modernize its operating structure through AI. Groupon plans to allocate a considerable portion of the near-term savings toward AI infrastructure, marketing systems, and higher-value hiring priorities.
Groupon stock edged nearly 1% higher in Wednesday’s premarket.
Alongside the restructuring announcement, Groupon increased its full-year adjusted EBITDA forecast. The company now expects 2026 adjusted EBITDA between $75 million and $80 million, compared with its previous outlook of $70 million to $75 million.
The filing also noted that Groupon continues reviewing additional automation and expense-reduction measures under an internal initiative called Project Foundry. Any further actions would still require board approval and could continue through 2027.
Also, Groupon disclosed that Chief Operating Officer Jiri Ponrt plans to leave the company effective July 10.
On Stocktwits, retail sentiment around the stock turned to ‘extremely bullish’ from ‘bullish’ territory the previous day. Message volume increased 476% in 24 hours.
A user said, “This is a textbook short squeeze candidate with technical fuel (thin float, high utilization, options gamma) + a fresh fundamental catalyst (guidance/restructuring).”
Another user said, “amazing setup. Shorts are on fumes and will have to acquiesce after a few more attempts at scaring people into selling.”
GRPN stock has gained over 17% year-to-date.
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