The e-commerce division of Alibaba based in South Asia, Daraz Group, announced that it will “bid farewell to many valued members” but has not provided an exact figure.
Sources at Daraz Bangladesh informed local media that the layoff figure would be substantial, potentially affecting 35 per cent of the current full-time staff of around 900.
“After much deliberation, we collectively decided to adopt a more streamlined and agile structure. Reluctantly, we will bid farewell to many valued members of the Daraz family,” Daraz said in a statement.
“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 sources added many employees in Bangladesh are also on the list for termination.
Daraz Group organised a town hall yesterday and its CEO James Dong informed the employees about the imminent layoff, according to people who took part in the meeting virtually.
Dong took over the role of Daraz’s chief executive in addition to his existing responsibilities last month after Bjarke Mikkelsen stepped down. Two people who were informed about the layoff claim that certain high-ranking executives are also being sacked.
Daraz Bangladesh also employs more than 800 people on a contractual basis, and their number might be cut significantly as well, according to the sources. An employee of Daraz said the downsizing of the company comes as it looks to attain profitability.
Chinese e-commerce giant Alibaba acquired Daraz Group in 2018. It has operations in Bangladesh, Pakistan, Nepal, Sri Lanka, and Myanmar. In Bangladesh, Daraz leads the e-commerce business with 50,000 vendors and 100,000 orders on average per day.
The expected layoff would be one of the biggest in the nascent e-commerce and digital service business in Bangladesh.
Earlier, Foodpanda implemented significant job cuts, while ShopUp reduced its workforce by approximately 1,000 employees. Daraz Bangladesh made dozens of layoffs in February of last year as its parent company cut its personnel by 11 per cent.
