Groupon Fires CEO; Replaces Him With Board Memebers

by Mercator Advisory Group 0

After a down quarter, Groupon’s Cehif Executive Officer Andrew Mason announced that he was fired in a memo to employees that he also posted publicly.

A day earlier, Groupon reported weak fourth- quarter earnings, which caused investors to shave off a quarter of the Chicago company’s value. The news about Mr. Mason, released after the market closed, sent shares up more than 4 percent in late trading.

The company replaced him with two board members while it searches for a replacement. In his note Mason positioned his departure as an opportunity for the company.

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!

Questions remain about the fate of daily deal companies since both Groupon, and its largest rival, LivingSocial, which is owned by Amazon, are both struggling.

Click here to read more from The New York Times.

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