Groupon Inc.’s China joint venture has fired a large number of workers for poor performance as the company competes for customers in the world’s largest Internet market, a person with knowledge of the matter said.
The Gaopeng.com site is financially viable and still hiring, said the person, who declined to be identified because the moves weren’t announced publicly. The firings weren’t made out of necessity, the person said.
Groupon, which plans an initial public offering, is making “progress” in China after opening Gaopeng.com earlier this year with investment by Tencent Holdings Ltd. (700), Groupon Chief Executive Officer Andrew Mason said in June. Gaopeng, also backed by Yunfeng Capital, a private equity fund begun by Alibaba Group Holding Ltd. Chairman Jack Ma, offered daily deals for goods and services in 30 cities as of June.