Daraz Group, an ecommerce platform headquartered in Pakistan and owned by Alibaba, has initiated significant staff reductions across its markets, according to an internal memo from acting CEO James Dong.
While the exact number of affected employees was not disclosed in the memo, sources suggest that up to a quarter of the company’s global workforce could be impacted. This reduction could equate to approximately 250 to 400 individuals in Pakistan, Daraz’s largest market, and potentially up to 800 employees across all Daraz Group operations.
Daraz operates in several countries including Bangladesh, Nepal, and Sri Lanka. However, it has ceased operations in Myanmar due to the ongoing civil conflict in the region.
In the memo, Dong cited Daraz’s cost structure as falling short of financial targets, necessitating swift action to ensure the company’s long-term sustainability and growth.
This move follows the recent departure of Bjarke Mikkelsen, Daraz’s founder and former CEO, who mentioned that Dong would focus on better integration of Daraz with other Alibaba-owned platforms such as Lazada, Trendyol, and AliExpress.
Founded in 2012 as an online fashion retailer by Rocket Internet, Daraz was acquired by Alibaba in 2018. Last year, the company underwent a similar downsizing, reducing its workforce by 11% amid challenging market conditions, affecting approximately 300 employees.
