Daraz announces dismissal of employees

Last year, Daraz had reported employing 3,000 individuals in its geographic regions.

Daraz announces dismissal of employees. Daraz Group, an e-commerce platform owned by Alibaba, has made the decision to lay off employees across the group as part of a strategic move towards a more streamlined and agile organizational structure. The announcement, conveyed through a memo to staff, did not specify the exact number of employees affected by the dismissal.

While Daraz declined to comment on the specific percentage or absolute number of employees impacted in its operations across Pakistan, Bangladesh, Nepal, Sri Lanka, and Myanmar, the memo expressed gratitude to the departing members of the Daraz family.

Last year, Daraz had reported employing 3,000 individuals in its geographic regions. However, challenging market conditions, compounded by factors such as the Ukraine crisis, supply chain disruptions, rising inflation, higher taxes, and reduced government subsidies, led to an 11% reduction in its workforce.

In light of these challenges, the company emphasized the need for immediate action to ensure the long-term sustainability and continued growth of the business. The group intends to concentrate on enhancing the customer experience by diversifying its product offerings to provide better value for money on its platform.

More From FactFile: Thousands lost their jobs in a month due to AI: report

Established in 2012 as an online fashion retailer in Pakistan, Daraz was acquired by the Chinese internet giant Alibaba in 2018. The company operates in four key sectors – e-commerce, logistics, payment infrastructure, and financial services, boasting more than 30 million buyers, 200,000 active sellers, and over 100,000 brands.

Earlier this year, Daraz appointed James Dong as the acting CEO, succeeding outgoing CEO Bjarke Mickelson. Mickelson had previously highlighted Pakistan and Bangladesh as the group’s largest markets.