Alibaba-Owned Daraz Group Announces Workforce Layoffs for Streamlined Structure
Alibaba-owned e-commerce platform Daraz Group has disclosed plans for layoffs across the organization to implement a “more streamlined and agile structure,” revealed Acting Chief Executive Officer James Dong in an internal memo to employees on Tuesday, as reviewed by Reuters.
The internal communication did not specify the exact number of individuals affected by the layoffs. Daraz opted not to comment on the percentage or absolute count of employees impacted across its operations spanning Pakistan, Bangladesh, Nepal, Sri Lanka, and Myanmar.
The memo conveyed a farewell message to departing members of the Daraz family, expressing regret over the necessity of the layoffs. Last year, Daraz informed Reuters of its 3,000 employees across various regions before reducing its workforce by 11%, citing challenging market conditions. Factors such as the Ukraine crisis, supply chain disruptions, inflation, increased taxes, and reduced government subsidies contributed to the decision.
“Despite our efforts to explore different solutions, our cost structure continues to fall short of our financial targets. Facing unprecedented challenges in the market, we must take swift action to ensure our company’s long-term sustainability and continued growth,” quoted Dong in the memo.
Dong outlined the group’s strategy to enhance consumer experience by diversifying value-for-money product offerings, expanding product categories, and improving the operational efficiency of sellers on its platform.
The e-commerce group had appointed James Dong as the acting CEO in January, succeeding outgoing CEO Bjarke Mikkelsen. Pakistan and Bangladesh were identified as the group’s largest markets, as stated by Mikkelsen in the previous year.
Founded in 2012 in Pakistan as an online fashion retailer, Daraz became part of the Alibaba portfolio in 2018. The business spans e-commerce, logistics, payment infrastructure, and financial services, boasting over 30 million shoppers, 200,000 active sellers, and more than 100,000 brands, according to company information provided to Reuters. Source – Reuters
