Tech lay-offs spread to South Asia as Alibaba-owned Daraz cuts 11 per cent of workforce amid difficult market environment
- Job cuts at Pakistan-based e-commerce firm Daraz follow a workforce reduction of more than 15,000 at parent Alibaba in the first nine months of 2022
- The redundancies are line with a trend in the wider technology industry, where firms are slashing headcount amid concerns about an economic slowdown
“In the last 12 months, the market environment turned and became extremely difficult,” Daraz chief executive Bjarke Mikkelsen said in an open letter posted on the company’s website.
That gloomy scenario included “a war in Europe, huge supply chain disruptions, soaring inflation, increasing taxes and removal of essential government subsidies in our markets”, Mikkelsen said.
The job cuts at Daraz are in line with a trend in the wider technology industry, where companies are slashing headcount amid continued concerns about an economic slowdown.
Notwithstanding the announced lay-offs, Daraz chief Mikkelsen said the company will “continue to invest in [its] future”, including product innovation and internal productivity.
Established in 2015, Daraz has expanded its user base to more than 15 million from 3 million in 2018, “with an average order growth of almost 100 per cent until last year”, Mikkelsen said.
The company has a merchandise portfolio of more than 50 million different products and ships more than 10 million packages monthly, according to its website.