Daraz Group, the e-commerce platform owned by Alibaba, has declared layoffs across its operations in Pakistan, Bangladesh, Nepal, Sri Lanka, and Myanmar, stating the necessity to adopt a “more streamlined and agile structure.”
Acting CEO James Dong conveyed this message in an internal memo reviewed by Reuters. While the memo did not specify the number of employees affected.
Daraz also declined to provide details on the percentage or absolute figure of layoffs.
According to last year’s figures provided by Daraz to Reuters, the company employed around 3,000 individuals across its various locations before implementing an 11 per cent reduction in its workforce due to challenging market conditions.These difficulties included factors such as the Ukraine crisis, supply chain disruptions, soaring inflation, higher taxes, and reduced government subsidies.
Despite exploring different solutions, Daraz’s cost structure continued to fall short of financial targets, prompting the need for swift action to ensure long-term sustainability and growth, Dong stated.
Dong expressed regret over bidding farewell to many valued members of the Daraz family, stressing the need to address unprecedented market challenges.
In an effort to enhance consumer experience, Daraz plans to diversify its product offerings, expand product categories, and improve operational efficiency for sellers on its platform. These initiatives align with the company’s focus on sustaining growth and long-term viability.
The appointment of James Dong as acting CEO in January marked a leadership transition at Daraz, with Dong replacing outgoing CEO Bjarke Mikkelsen. Mikkelsen had previously marked Pakistan and Bangladesh as Daraz’s largest markets.
Daraz, a Pakistani online apparel shop founded in 2012, was purchased by Alibaba, a major Chinese internet company, in 2018.
The company’s operations span e-commerce, logistics, payment infrastructure, and financial services, serving more than 30 million shoppers, with over 200,000 active sellers and partnerships with over 100,000 brands.
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