Groupon has fired chief executive Andrew Mason following a dreadful earnings report, which saw the company's stock fall by 25 per cent in a single day.
Founding the firm in November 2008, Andrew Mason took Groupon to new heights in 2010 and appeared on the cover of Forbes as a result, lauded as creating the fastest growing company ever.
Despite Google offering $6bn for the company in the following year, Groupon has suffered difficulties under the leadership of Mason ever since. As a result, the firm is now valued at just $3bn.
It is believed that investors and directors Eric Lefkofsky and Ted Leonsis will take leadership of the company until a new CEO is found.
Surprisingly, the decision to remove Mason as CEO has been received as a positive one by Wall Street, with stock in the firm rising four per cent to $4.72 per share immediately following the announcement.
Pressure on Mason began to mount as demand for the voucher service began to dwindle. Much of Groupon's revenue is generated via daily coupons and as a result, the service's declining support saw first-quarter revenue fall around $80 million short of expectations.
As shares in the firm shed 24 per cent of their revenue after a quarterly earnings meeting, which saw the business report increased losses, this proved to be the final straw as Mason was immediately let go.
Ahead of his departure, Mason issued a statement to Groupon employees, which accepts responsibility for the firm's troubles and highlights the change as one that would have a positive impact on the company
The statement is available to read in full below.
People of Groupon,
After four and a half intense and wonderful years as CEO of Groupon, I’ve decided that I’d like to spend more time with my family. Just kidding I was fired today. If you’re wondering why… you haven’t been paying attention. From controversial metrics in our S1 to our material weakness to two quarters of missing our own expectations and a stock price that’s hovering around one quarter of our listing price, the events of the last year and a half speak for themselves. As CEO, I am accountable.
You are doing amazing things at Groupon, and you deserve the outside world to give you a second chance. I’m getting in the way of that. A fresh CEO earns you that chance. The board is aligned behind the strategy we’ve shared over the last few months, and I’ve never seen you working together more effectively as a global company it’s time to give Groupon a relief valve from the public noise.
For those who are concerned about me, please don’t be I love Groupon, and I’m terribly proud of what we’ve created. I’m OK with having failed at this part of the journey. If Groupon was Battletoads, it would be like I made it all the way to the Terra Tubes without dying on my first ever play through. I am so lucky to have had the opportunity to take the company this far with all of you. I’ll now take some time to decompress (FYI I’m looking for a good fat camp to lose my Groupon 40, if anyone has a suggestion), and then maybe I’ll figure out how to channel this experience into something productive.
If there’s one piece of wisdom that this simple pilgrim would like to impart upon you: have the courage to start with the customer. My biggest regrets are the moments that I let a lack of data override my intuition on what’s best for our customers. This leadership change gives you some breathing room to break bad habits and deliver sustainable customer happiness don’t waste the opportunity!
I will miss you terribly.