Daraz Announces Further Layoffs To Adopt More Streamlined Structure

Alibaba-owned e-commerce platform Daraz Group recently announced layoffs across the group. The acting Chief Executive Officer James Dong stated that the company wants to adopt a more streamlined and agile structure which is why they are firing several employees amid tough market conditions. The decision about layoffs was announced through an internal memo to employees. However, the memo did not mention the number of people affected by the layoff. Daraz also refused to comment on the percentage or absolute number of employees affected across its operations in Pakistan, Bangladesh, Nepal, Sri Lanka, and Myanmar.

The memo stated:

“Reluctantly, we will bid farewell to many valued members of the Daraz family”

Daraz Fires Several Employees Amid Tough Market Conditions

Last year, Daraz employed 3,000 employees across its geographies, before cutting its workforce by 11% due to difficult market conditions. The Ukraine crisis, supply chain disruptions, soaring inflation, higher taxes, and fewer government subsidies are among various reasons that affected the business.

According to the CEO, the e-commerce platform wants to improve the experience by diversifying offerings of value-for-money products, extending product categories, and improving the operational efficiency of sellers on its platform. The company is making efforts to explore different solutions, however, its cost structure is falling short of its financial targets. That’s why, the company fired several employees in various regions. Facing unparalleled challenges in the market, Daraz needs to take quick action to ensure the company’s long-term sustainability and continued growth.

The Daraz’s CEO is quite confident that the remaining team will continue to uplift communities through the transformative power of commerce. According to him, collective strength and commitment will help to shape the future of digital commerce. The platform will work to improve the operational efficiency of sellers to develop an efficient, nimble, and resilient organization. Daraz is a leading e-commerce platform in South Asia and the top online shopping app in Pakistan. It has more than 30 million shoppers, 200,000 active sellers, and over 100,000 brands. Let’s see what strategy the platform adopts for its sustainability and growth.