In a bid to fix its struggling European operations, daily deals site Groupon Inc (NASDAQ:GRPN) is rejigging its top management around, Reuters reported on Friday.
According to an internal memo obtained by Reuters, Chris Muhr, SVP of sales, will now head the Europe, Middle East and Africa region, while Veit Dengler, SVP International, will be leaving the company.
The report said that the memo did not have any reason for Dengler's departure. Recently national sales head Lee Brown had also left the company.
The slowdown in Europe has impacted the company’s profitability as consumers are spending less.
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Fixing its European operations has become an imperative for Groupon after the second-quarter revealed big problems with that business, driving the company's already weak share price even lower, the report said.
Groupon was heralded with a lot of hype as a new-age Internet company with a sound business model.
The economic slowdown and cuts in spending all around has exposed the weakness of such companies that are not able to sustain themselves in recessive conditions.
The stock has depreciated about 75 percent since its market debut late last year.
"We've made great progress in the last few months, but we still have a lot of work to do, particularly in Europe," Groupon's operations chief Kal Raman said in the internal memo.
"While our challenges in Europe are no secret, after spending two weeks there, I am energized by the great team and clear opportunities to improve," he said.