Employees Say Groupon China Closes More Branches, Lays Off Workers

via windows8update.com

I’ve seriously run out of ways to begin these “troubled group buy site” stories. But while it seems none of these sites are doing particularly well, there are a few sites we see again and again in the news — that’s not a good thing. This time it’s Groupon’s (NASDAQ:GRPN) ill-fated (or rather, ill-managed) China JV Gaopeng.

Fresh off the heels of its fake-watch-selling scandal, Gaopeng employees have told the National Business Daily the company has engaged in a fresh round of office closings and layoffs. Purportedly on the list are the Wenzhou, Nanchang, and Baoding branches, among others. Gaopeng once had 128 branches in China; according to the employees National Business Daily spoke with, after this most recent round of closings it is left with only 39. Gaopeng reps told the paper this was just normal business adjustment.

Workers like a Mr. Chen were dismissed suddenly, receiving emails that listed the cause of their dismissal as major economic changes that made it impossible for the company to fulfill the employment contract. Employees also received compensation, but some apparently feel it was insufficient.

Groupon’s stock seems largely unaffected for now, but I’m starting to wonder what will happen to it if this China disaster finally blows up.