On 27 February 2024, Daraz Group, owned by Alibaba, revealed plans for layoffs throughout the company in order to establish a more efficient and adaptable organisational framework.
James Dong, acting CEO, Daraz, communicated this decision in an internal memo addressed to employees.
The memo did not specify how many employees would be affected by the layoffs. Daraz chose not to disclose the exact percentage or total number of employees impacted in Bangladesh, Nepal, Pakistan, Myanmar and Sri Lanka.
In January, Dong took over as acting CEO from Bjarke Mikkelsen, outgoing CEO. Pakistan and Bangladesh are Daraz’s largest markets.
Daraz, founded in 2012 as an online fashion retailer in Pakistan, was acquired by Alibaba in 2018. The company operates in e-commerce, logistics, payment infrastructure and financial services, serving over 30 million shoppers with 2,00,000 active sellers and over 1,00,000 brands.
Last year, Daraz laid off 3,000 employees across various regions. Due to challenging market conditions, including the Ukraine crisis, supply chain disruptions, inflation, higher taxes and reduced government subsidies, the e-commerce platform reduced its workforce by 11 per cent.
The company stated that despite efforts to find solutions, the company’s cost structure fell short of financial targets, prompting the need for swift action to ensure long-term sustainability and growth. The company further emphasised plans to enhance the consumer experience by offering more value-for-money products, expanding product categories, and improving seller efficiency on the platform.
