“We got really big” – Groupon president and chief operating officer Rob Solomon resigns

Groupon president and chief operating officer Rob Solomon has resigned, leaving just over one year after joining the company that pioneered the group buying concept.

The resignation comes as a shock given the speed of Groupon’s growth – it is turning over an estimated $US700 million in revenue, and in several reported discussions with investment banks have valued the company at a massive $US25 billion.

According to the Wall Street Journal, Solomon says he resigned from his position in part because the company “got really big”, denying there were any internal problems.

“I agree with Andrew that we really need a much different type of operator to take it to the next level,” he said.

“What we did in that one year is equivalent to what happens in five years at the best internet companies.”

It isn’t the first time a fast-growing tech company has lost employees due to excessive growth – recently Google Australia veterans Lars Rasmussen and Kate Vale said they would be leaving for smaller companies.

Solomon has certainly experienced some fast growth at Groupon. According to internal figures the company has over 6,000 employees, compared to just 200 in November 2008.

However, Solomon is no stranger to large companies. He previously served as senior vice president of commerce at Yahoo, and was the general manager of the Yahoo shopping network.

But despite any controversy over his departure, it has been reported the split is amicable. An internal email sent by chief executive Andrew Mason states that Solomon “added enormous value to Groupon and we’ll miss having him around”.

“Rob Solomon joined Groupon just over a year ago, doing what he once considered unimaginable and relocating his family from “God’s Country” in Woodside, CA to Chicago, bringing his experience as a seasoned Internet executive to help us turn Groupon into the next great technology company.”

It is this relocation that could have been a factor in Solomon’s resignation, several reports have suggested, with the email going onto say that he and his family will return to Woodside.

Mason added in the email that Solomon will remain in his position as the search for a new chief operating officer continues. “He will remain a friend and advisor to the company into perpetuity,” he added.

The WSJ has reported Solomon may set up a California office for venture capital firm Lightbank, but he is still considering his options.

Solomon spoke to SmartCompany last year about the explosion of Groupon clones in the Australian market, commenting that consumers will see “a consolidation over time”.

“All over the world they are jumping on the market. But there just isn’t going to be room for 20 to 30 players, there’ll be room for one or two main ones, and then maybe some niche sites,” he said.