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In June, Ouyang Yun, chief operating officer of Gaopeng, told the FT the company had hired 3,000 employees and expanded to 50 cities. But last week, managers were told the headcount had to come down to 2,000, and between 20 and 41 offices would be closed because there was not enough cash.
People close to Gaopeng said Oliver Samwer, the German entrepreneur who heads up Groupon’s international operations, had pushed for the rapid expansion.
Mr Samwer works for Groupon International based on a consulting contract which was signed after Groupon bought CityDeal, the European Groupon clone founded by him, in May 2010, but which runs out in October. Mr Samwer could not be reached for comment."