Daraz Group, the South Asian branch of Alibaba's e-commerce platform that operates in five markets including Bangladesh, on Tuesday announced that it was letting go of a portion of its employees, but refrained from disclosing the actual figure.
"After much deliberation, we collectively arrived at the decision to adopt a more streamlined and agile structure. Reluctantly, we will bid farewell to many valued members of the Daraz family," the organization said in a statement.
Daraz Group on Tuesday held a town hall around 12 noon, where Daraz Group CEO James Dong informed the employees about the imminent layoffs.
Dong took over the role of Daraz's chief executive in addition to his existing responsibilities last month after Bjarke Mikkelsen stepped down.
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, Mikkelsen said last year.
This decision was taken as a last resort, the statement said.
"Over the past couple of years, we have worked to manage costs and improve operational efficiency substantially. 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," the statement added.
For those who will continue their journey at Daraz, the CEO appreciated their understanding and resilience and believed they can help Daraz navigate this challenging period together.
Talking to Dhaka Tribune, a senior Daraz Bangladesh official said that the layoff is applicable for all the countries where Daraz has its footprints.
He also said the head office hasn’t informed them how many employees will be laid off from Bangladesh.
He further said that the Singapore office privately informed the employees who will be laid off.
The company will clear all the benefits and financial aspects as per the employee scale of the organization. The effective date is yet to be disclosed, however, it may be imminent for some employees and may be gradual for the rest, he added.
Currently, there are 800-900 employees of Daraz in Bangladesh, the official also said.
CEO James Dong also said that moving forward, their focus is on proactively improving the consumer experience by diversifying offerings of value-for-money products and expanding the product categories.
“In tandem, we will work to enhance the operational efficiency of sellers on our platform. We will also strive to cultivate an efficient, nimble and resilient organization,” he added.
He also said that they remain passionate and ambitious about South Asia, and are committed to maintaining their regional presence in order to continue contributing to its digital transformation.
“Our overarching goal is to enable businesses and consumers across South Asia to reap the benefits of e-commerce,” Daraz CEO added.
Last year, Daraz Bangladesh laid off dozens of employees as its mother organization, Daraz Group, reduced its workforce by 11% explaining in a statement that it was to cope with current market reality.
Founded in 2012 in Pakistan as an online fashion retailer, Daraz was later acquired by Chinese internet giant Alibaba 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 the media.
