Daraz Bangladesh to slash its team by 5%
As part of the group level decision of slashing 11% employees, Daraz Bangladesh has planned to downsize its 1,200-permanent member team by nearly 5%, confirmed company sources.
The leading online marketplace of the country is expected to lay off 40-50 employees, according to a company official who spoke anonymously. Despite this, the company plans to provide additional compensation to those affected.
The CEO of Daraz Group, Bjarke Mikkelsen, announced on Monday that the company will be letting go of 11% of its workforce across Bangladesh, Pakistan, Sri Lanka, and Nepal. This decision was made to “prepare the company for the current market reality and to ensure that Daraz will thrive in the long term,” he stated.
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Despite facing challenges due to a war in Europe, supply chain disruptions, inflation, increasing taxes, and the removal of government subsidies, Daraz Group has continued to grow its business. The company has increased its active shoppers from three million in 2018 to more than 15 million today, with an average order growth of almost 100% until last year.
However, in order to address the lower growth outlook in the coming years, the company must improve profitability and reduce costs. This will involve focusing on the core business, simplifying the organization, and doing more with less in all departments. Mikkelsen stated, “We need to collectively do everything we can to weather the storm.”
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