Groupon Co-Founder Eric Lefkofsky has stepped down from his position as CEO. Effective Nov. 4, the Groupon Board of Directors appointed Rich Williams, formerly the company’s Chief Operating Officer, to replace Lefkofsky in his position. Lefkofsky will return to his role as Chairman of the Board.
“I am honored to be leading the company as Groupon evolves into a daily habit in our customers’ lives,” said Williams in a statement. “Under Eric, we made significant strides in establishing our marketplace. That work will continue with a greater focus than ever. As CEO, my top priority is to unlock the long-term growth potential in the business by demonstrating everything the new Groupon has to offer. We have a great team here and I look forward to the opportunities ahead of us.”
In the wake of the news, Groupon’s stock dropped more than 30% in pre-market trading. Groupon has been in a state of distress in recent months, laying off as many as 1,100 employees and ceasing operations in seven countries. The company’s stock has fallen more than 60% since the beginning of 2015.
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Groupon announced its Q3 financial earnings results concurrently with the CEO change, posting a net quarterly loss of $27.6 million.
Williams indicated that he will assume the CEO role with three immediate priorities at hand:
“First, we will renew our investment in customer acquisition to introduce more new customers to our marketplace and accelerate growth,” Williams said. “Second, we will increase our focus on streamlining our international operations to ensure we are operating as lean and efficiently as possible. Finally, we will shift our Shopping category away from lower margin ‘empty calorie’ products to grow a sustainable, healthy goods business with stronger margins.”
