South Asia’s leading e-commerce marketplace Daraz has announced an 11% reduction in the workforce citing very difficult market conditions. Daraz Managing Director Ehsan Saya told employees regarding Daraz Layoffs; “Daraz is restructuring to ensure we continue to grow in the future.”
Daraz Layoffs: Current Market Conditions Fuel the Decision
While explaining the reason for Daraz’s Layoffs, the top executive said; “The decision has been made by myself and the leadership team to prepare the company for the current market reality and to ensure that Daraz will thrive in the long term to achieve our vision.” He further added; “Given global economic conditions, we are ensuring that we invest in all the right priorities. We will continue investing in Pakistan and we are strong believers of this market, hence, we felt it is imperative that we reorganise our structure to scale and grow in the coming years.”
While thanking the team for their services, Chief Executive Officer Bjarke Mikkelsen said; “For the last 5 years, we have been following our long-term business plan and increased our active shoppers from 3 million in 2018 to more than 15 million today, with average order growth of almost 100% until last year. We came out of COVID strong thanks to all the hard work and dedication of everyone in the team. I can’t thank you enough for this!”
Daraz to Continue Investing in Product Innovation
The CEO said Daraz Pakistan would continue to invest in product innovation across our platforms. Earlier in October, Daraz invested in the region’s first smart distribution centers in Karachi and Lahore as a testimony to building a sustainable future for e-commerce in Pakistan and will continue to look for opportunities and investments that are aligned with our strategy. “Naturally, given global economic conditions we are ensuring we invest in all the right priorities. We will continue investing in Pakistan and are strong believers of this market, hence, we felt it is imperative that we reorganise our structure to scale and grow in the coming years”, said Mikkelsen.
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