Chicago-based Groupon reached an agreement with the Equal Employment Opportunity Commission to establish and contribute $350,000 for a fund to support STEM education for Black students.
The agreement comes following an EEOC investigation, according to an EEOC news release Wednesday. The EEOC and Groupon did not immediately respond to a Tribune request for comment asking for clarification around the investigation.
The Tribune previously reported on an EEOC investigation into Groupon’s hiring practices in 2016 based on a complaint lodged by Adrian Stratton who alleged Groupon did not hire him for a vice president position because he is Black.
The online marketplace has been struggling for years, issuing a warning in May that it could be headed toward insolvency. Most recently, Groupon announced it would be downsizing its headquarters.
Under the EEOC agreement, Groupon will contribute funds to improve primary and secondary STEM education and award scholarships to Black students pursuing advanced degrees in STEM fields. The EEOC news release stated that Groupon will also “voluntarily provide annual reports to the EEOC on recruitment activities and hiring demographics and will meet regularly with the EEOC to discuss Groupon’s progress.”
“Groupon has demonstrated that it is committed to diversity, equity and inclusion, including through contributing to furthering STEM education and improving its hiring and recruiting practices,” said Diane Smason, acting district director of the EEOC’s Chicago District Office, in the news release.
The company had more than 11,000 employees worldwide at its peak in 2012. It is unclear how many Groupon employees remain in the Chicago area.
Groupon had 2,904 employees worldwide, including 799 in the U.S., at the end of 2022, according to SEC filings. Another 700 employees were laid off during the first quarter, with more cuts reported on LinkedIn as recently as November.
“Building and nurturing a diverse and engaged workforce is a mission-critical priority for Groupon,” said Emma Coleman, Groupon’s global head of communications and diversity, equity and inclusion, in the Wednesday news release. “We also want to contribute to a future where there is equality of opportunity for all, and, in this spirit, we are excited to create the STEM educational fund.”
Chicago Tribune reporter Robert Channick contributed.