Daraz Group, an e-commerce platform under the Alibaba umbrella, has announced significant layoffs across its operations. Acting CEO James Dong communicated this decision in an internal memo to employees, citing the need for a “more streamlined and agile structure.” While the exact number of affected employees was not disclosed, the memo expressed regret at bidding farewell to valued members of the Daraz family.
The layoffs come as part of Daraz’s efforts to adapt to challenging market conditions. Last year, the company employed around 3,000 individuals globally before reducing its workforce by 11%. Various factors, including the Ukraine crisis, supply chain disruptions, and economic challenges such as inflation and higher taxes, contributed to the decision.
James Dong emphasized the necessity of addressing the company’s cost structure to meet financial targets amidst unprecedented market challenges. To ensure long-term sustainability and growth, Daraz plans to enhance consumer experience by diversifying its product offerings, expanding categories, and improving the operational efficiency of sellers on its platform.
The appointment of James Dong as acting CEO earlier this year marked a leadership change for Daraz, succeeding outgoing CEO Bjarke Mikkelsen. Notably, Pakistan and Bangladesh stand as the group’s primary markets, according to Mikkelsen’s statements last year.
Founded in 2012 as an online fashion retailer in Pakistan, Daraz became part of Alibaba’s portfolio in 2018. The company has since expanded its scope, covering e-commerce, logistics, payment infrastructure, and financial services. With over 30 million shoppers, 200,000 active sellers, and more than 100,000 brands, Daraz remains a significant player in the e-commerce landscape.
