alibaba’s daraz lays off 11% of employees as layoffs rock startups
Layoffs in the tech industry have been on the rise ever since we started recovering from Covid. In the year 2022, many big retail giants closed their work units. In January 2023 many beneficiaries again continue this trend and cut down their workforce which we covered; you can tap on it to see the list of layoffs before moving on.
Therefore, today we are here with new news of layoff! The Daraz Group of Alibaba Group Holding Ltd. is cutting its workforce by 11% due to the slowdown in online commerce.
In 2018 Daraz was acquired by Alibaba, a Pakistani company. It has had more than 15 million buyers in the last 5 years. But in 2022, they face a post-war recession in Europe and rising inflation disrupting supply chains and economies. Bjarke Mikkelsen the CEO of the company confirmed this.
The CEO on his Twitter handle that the decision was taken “to prepare the company for the current market reality and to ensure that Daraz will thrive in the long term,”
“Despite these headwinds, we are still growing our business and we have made progress in our unit economics over the past 12 months” They added.
There are several companies that are part of Alibaba to represent them overseas. Daraz joins a group of private firms, including Lazada Group SA in Turkey and Trendiol is part of it.
In 2021, this Pakistani company said thanks to a dominant position in South Asian markets the reason was because they doubled their income in next 5 years.
Although let me remind you that Alibaba announced layoffs earlier which was a blow to the industry but today we are waking up to any news of layoffs, so get used to it!