Alibaba’s South Asian e-commerce giant Daraz announces layoffs in memo

KARACHI : Alibaba-owned e-commerce platform Daraz Community has introduced layoffs across the community to “adopt a more streamlined and agile construction”, acting Chief Executive Officer James Dong said on Tuesday in an interior memo to staff reviewed by Reuters.

The memo didn’t mention the style of oldsters tormented by the layoff. Daraz declined to touch upon the proportion or absolute style of staff impacted across its operations in Pakistan, Bangladesh, Nepal, Sri Lanka and Myanmar.

“Reluctantly, we’re going to suppose farewell to many valued contributors of the Daraz family,” the memo to workers said.

Last twelve months, Daraz knowledgeable Reuters it employed 3,000 staff across its geographies, earlier than the e-commerce marketplace cutting back its team by 11 per cent attributable to refined market prerequisites, the Ukraine crisis, offer chain disruptions, hovering inflation, higher taxes and fewer government subsidies, amongst other reasons.

“In spite of our efforts to detect diverse alternate choices, our label construction continues to tumble searching our financial targets. Going through unprecedented challenges out there, we must rob swift action to create sure that our company’s lengthy-term sustainability and continued sigh,” Dong became once quoted as announcing.

He added that the community plans to focal point on proactively bettering user ride by diversifying offerings of worth-for-money products, expanding product categories and adorning operational effectivity of sellers on its platform.

In January, the e-commerce community appointed James Dong as acting CEO, replacing outgoing CEO Bjarke Mikkelsen.

Pakistan and Bangladesh are the community’s greatest markets, outgoing CEO Mikkelsen said remaining twelve months.

Founded in 2012 in Pakistan as a web trend retailer, Daraz became once later bought by Chinese web big Alibaba in 2018.

The trade covers four key areas – e-commerce, logistics, fee infrastructure and financial services and products. It has bigger than 30 million prospects, 200,000 active sellers and over 100,000 manufacturers, the company knowledgeable Reuters.