Retail giant Daraz has decided to let go of “many valued members of the Daraz family” because it has failed time and time again to meet its financial targets.
“We made this decision as a last resort,” claimed acting CEO James Dong in an official statement. Over the previous several years, we have made great strides in reducing spending and increasing operating efficiency.
We have tried numerous techniques, but our cost structure is still failing to reach our financial targets. Our ability to swiftly address the exceptional challenges we are encountering in the industry is crucial to the sustainability and expansion of our business in the long run.
The dedication and expertise of individuals who are departing have been vital in shaping Daraz into what it is today. Daraz would not have been successful without you. Countless sellers and millions of purchasers have been profoundly and eternally affected by our combined digitizing efforts. We will make every effort to assist you, including providing a severance package, career assistance, and health care.
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For your unwavering support of those who will remain at Daraz, we are eternally grateful. The statement claims that we are positive in our ability to help Daraz get through this challenging period.
In an effort to better serve its customers, Daraz is concentrating its efforts, according to Dong’s announcement, to offer a broader variety of products at accessible rates across a wider range of product categories. We can streamline vendor operations on our platform if we work together.
“We will also work to build a strong, agile, and resilient organization that is full of grit and determination to win the battles that will be necessary to keep us at the top of our game in all five markets,” according to him.
The continuation of our regional presence is a reflection of our unwavering commitment to the South Asian market and our desire to play an integral role in its digital development. “Our main objective is to make e-commerce accessible to people and companies all over South Asia,” he said.
Interim CEO of Daraz:
The interim CEO is confident that the remaining personnel will continue to empower communities through the transformative power of business. “Let us come together and strive for a future where online shopping makes a bigger and more apparent impact,” he remarked as he wrapped up.
In the lead-up to major sales events, especially in Q4, all global e-commerce platforms, say experts, hire a lot of people. You can cut ties with those temporary workers once the first quarter of the year arrives and demand begins to decline. The New Year’s sale follows the busiest period of the year for Daraz, which is from 11/11 to 12/12.
Interestingly, due to difficult market conditions, Daraz laid off 11% of its workforce last year.
Attempting to justify the firing spree, CEO Bjarke Mikkelsen cited factors such as the war between Russia and Ukraine, supply chain disruptions, increasing prices, higher taxes, and the elimination of important government subsidies in markets like Pakistan as reasons why the market climate had changed and become extremely challenging.
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