Kathmandu, Nepal — February 28, 2024
Daraz Group, a leading e-commerce platform in South Asia and an Alibaba subsidiary, today announced a significant organizational restructuring aimed at achieving a more agile and streamlined operation. The decision comes as the company navigates market challenges and seeks to ensure long-term sustainability.
Key Points:
- Layoffs Across Operations: Daraz Group will implement layoffs across its operations in Pakistan, Bangladesh, Nepal, Sri Lanka, and Myanmar. The goal is to create a more efficient structure that aligns with the evolving market dynamics.
- No Specific Numbers Mentioned: While the internal memo from acting Chief Executive Officer James Dong did not specify the exact number of employees affected, it emphasized the need for swift action to address financial targets and market uncertainties.
- Market Challenges: Daraz faced difficulties due to factors such as the Ukraine crisis, supply chain disruptions, soaring inflation, higher taxes, and reduced government subsidies. These challenges prompted the company to reevaluate its cost structure.
- Valued Team Members: The memo expressed gratitude to the Daraz family and acknowledged that the layoffs would impact many valued team members. The company remains committed to supporting those affected during this transition.
- Consumer Experience Enhancement: Daraz plans to proactively enhance consumer experience by diversifying its product offerings, expanding categories, and improving operational efficiency for sellers on its platform.
- Leadership Transition: In January, James Dong assumed the role of acting CEO, succeeding outgoing CEO Bjarke Mikkelsen. Daraz continues to focus on its core areas, including e-commerce, logistics, payment infrastructure, and financial services.
About Daraz Group:
Founded in 2012 in Pakistan, Daraz quickly established itself as a prominent online fashion retailer. In 2018, Chinese internet giant Alibaba acquired Daraz, propelling its growth across South Asia. Today, Daraz serves over 30 million shoppers, collaborates with 200,000 active sellers, and represents over 100,000 brands.
