Due to the pandemic, the economic recession has hit globally and it is forcing major companies to lay off their employees to reduce the workforce and expenses. Likewise, a quick commerce startup, Airlift has discontinued its operations in certain regions and has laid off 31% of its headcount to manage the revenue situation.
Airlift discontinued its operations from South Africa and small cities in Pakistan
Airlift posted a statement on its official LinkedIn account confirming the layoff of its workforce; “In the light of the significant downturn in global capital markets, Airlift is undertaking a strategic realignment to reduce the surface area of operations and to increase focus in key areas that drive sustainability and profitability.” The company also mentioned that these are important steps toward Airlift’s long-term vision of enabling self-empowerment and leveraging technology to offer customer-centric solutions.
The statement further mentioned that Airlift has discontinued its operations from certain markets, including Faisalabad, Gujranwala, Sialkot, Peshawar, Hyderabad, Johannesburg, and Cape Town and Pretoria as a part of strategic realignment to reduce the surface area of operations and to increase focus in key areas. “The above efforts are a part of Airlift’s strategy to focus on building scale and profitability in markets with considerable scale and high order density,” the statement added.
Relocation of dark stores
Airlift also intends to relocate dark stores to major cities including Lahore, Karachi, and Islamabad. These stores are currently located in Pakistani villages and small towns where service demand is low. Relocating them to a larger market will earn more profit as it accounts for almost 90% of the company’s revenue. About a 31% reduction in the workforce, Airlift said; “The decision to part ways with talented teammates has been incredibly challenging for the company. For impacted teammates, Airlift stands committed to providing financial and placement support to help find new roles.”
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