Following a wave of online speculation regarding a potential operational shutdown and changes to Alibaba’s investment strategy in South Asia, e-commerce platform Daraz has officially clarified its position, firmly denying any plans to close its doors.
The speculation intensified recently after the company announced the closure of 16 out of its 100 delivery hubs in Bangladesh, alongside the layoff of 100 employees.
The operational changes in Bangladesh align with a broader, region-wide restructuring strategy implemented by Daraz’s parent company, Alibaba, which has seen significant cost-cutting and high-level layoffs across its other South Asian markets, including Pakistan and Nepal.
Driven by regional macroeconomic challenges such as high inflation and supply chain disruptions, the e-commerce group has aggressively streamlined its corporate footprint.
In Pakistan, Daraz's largest market, restructuring directives previously resulted in workforce reductions affecting roughly a quarter of the local staff, while the company explicitly cited the need for a leaner cost structure to navigate unprecedented fiscal pressures.
Similarly, Daraz Nepal executed parallel downsizing measures, which included corporate layoffs, recruitment freezes, and major executive reshuffling, notably marked by the departure of managing director Aanchal Kunwar.
These multi-country adjustments reflect a strategic shift by Alibaba to curb losses and improve net profitability across its international digital commerce portfolio.
Much like the response from corporate leadership in Dhaka, management in Kathmandu and Karachi defended the structural downsizing as routine, performance-linked adjustments aimed at ensuring long-term financial sustainability rather than preparing for a market exit.
In response to the growing rumors that these measures signaled an exit from the country, Daraz issued a clear statement declaring such claims to be entirely untrue and baseless.
In its official statement, Daraz addressed the market rumors directly, explaining that it is actively transitioning to a more agile and lean organizational model.
"Daraz is strongly committed to the Bangladeshi market, and we have no plans to withdraw from this market," the company stated. "Bangladesh is a crucial market for us, and any claims to the contrary are completely incorrect and baseless."
The company explained that it regularly reviews its organizational structure and financial management to align with changing business priorities and long-term strategic goals.
Recent operational adjustments are a direct result of this ongoing planning process, rather than a precursor to shutting down.
While acknowledging the difficult reality of organizational restructuring, leadership clarified that the strategic moves are designed to manage costs, navigate macroeconomic challenges, and ensure a stable future.
"We are operating our business as usual," Daraz added. "We remain dedicated to working toward achieving sustainable growth while contributing to the development of Bangladesh's digital economy."
Rather than exiting the market, the e-commerce leader reinforced that it continues to be ambitious about the region’s digital transformation.
The company’s current focus is on building a resilient organization capable of maintaining its leadership position across its active territories, expanding its product categories, and enhancing operational efficiency for its network of sellers.