Daraz Group, a subsidiary of Alibaba Group and an e-commerce platform, announced that it layoffs 11% of its workforce in order to prepare for the “current market reality.”
In a letter to staff posted on the company website, Daraz Group, a subsidiary of Alibaba Group and an e-commerce platform, announced that it layoffs 11% of its workforce in order to prepare for the “current market reality.”
Mikkelsen pointed to a challenging market environment that included a war in Europe, significant supply chain disruptions, skyrocketing inflation, rising taxes, and the removal of crucial government subsidies in its markets.
The organisation is active in Nepal, Sri Lanka, Bangladesh, Pakistan, and Bangladesh. Scroll to the next advertisement Established in Pakistan in 2012, Daraz is the biggest e-commerce retail platform in that country.
In 2018, Alibaba (9988.HK), a major Chinese company, purchased Daraz. On its platform are 100,000 SMEs in Pakistan. Daraz claimed to have 10,000 employees and access to 500 million customers in 2021. Over the past two years, it has invested $100 million in Pakistan and Bangladesh.
In Pakistan, the platform is being used by more than 100,000 small and medium-sized businesses. According to Ehsan Saya, managing director of Daraz Pakistan, Pakistan is the company’s biggest market, and the country employs the most Daraz personnel.
“Around one-third of the Pakistani staff is made up of regional teams that work in conjunction with teams from Bangladesh, Nepal, Sri Lanka, Myanmar, Singapore, and China,” he continues. Saya affirmed that the personnel reduction of 11% for the entire Daraz group will also result in 11% of the layoffs of workforce in Pakistan.
On the other hand, the company did not immediately respond regarding the number of staff affected by the move and restructuring details. Using “an average order growth of about 100% until last year,” Mikkelsen claimed in the letter, Daraz was able to increase the number of active shoppers from three million in 2018 to more than 15 million today.
The COVID-19 pandemic and the ensuing economic downturn have had an effect on the technology industry. To stay afloat, many businesses have had to make challenging choices, like layoffs.
While the industry has been recovering, the process has been uneven and slow, which has resulted in some businesses continuing to fire employees and reduce their workforces.