Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

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

Published 02/27/2024, 01:49 AM
Updated 02/27/2024, 01:55 AM
© Reuters. A woman looks at clothes while visiting a shopping mall ahead of Eid al-Fitr in Karachi August 6, 2013. REUTERS/Athar Hussain/file photo

By Ariba Shahid

KARACHI (Reuters) - Alibaba-owned e-commerce platform Daraz Group has announced layoffs across the group to "adopt a more streamlined and agile structure", acting Chief Executive Officer James Dong said on Tuesday in an internal memo to employees reviewed by Reuters.

The memo did not mention the number of people affected by the layoff. Daraz declined to comment on the percentage or absolute number of employees impacted across its operations in Pakistan, Bangladesh, Nepal, Sri Lanka and Myanmar.

"Reluctantly, we will bid farewell to many valued members of the Daraz family," the memo to staff said.

Last year, Daraz told Reuters it employed 3,000 employees across its geographies, prior to the e-commerce marketplace cutting its workforce by 11% due to difficult market conditions, the Ukraine crisis, supply chain disruptions, soaring inflation, higher taxes and fewer government subsidies, among other reasons.

"Despite our efforts to explore different solutions, our cost structure continues to fall short of our financial targets. Facing unprecedented challenges in the market, we must take swift action to ensure our company's long-term sustainability and continued growth," Dong was quoted as saying.

He added that the group plans to focus on proactively improving consumer experience by diversifying offerings of value-for-money products, expanding product categories and enhancing operational efficiency of sellers on its platform.

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

Pakistan and Bangladesh are the group's biggest markets, outgoing CEO Mikkelsen said last year.

© Reuters. A woman looks at clothes while visiting a shopping mall ahead of Eid al-Fitr in Karachi August 6, 2013. REUTERS/Athar Hussain/file photo

Founded in 2012 in Pakistan as an online fashion retailer, Daraz was later acquired by Chinese internet giant Alibaba (NYSE:BABA) in 2018.

The business covers four key areas – e-commerce, logistics, payment infrastructure and financial services. It has more than 30 million shoppers, 200,000 active sellers and over 100,000 brands, the company told Reuters.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.