Daraz

Daraz on 2024-02-26.

South Asia's leading e-commerce platform Daraz has laid off 11% of its workforce due to extremely difficult market conditions, as announced by CEO Bjarke Mikkelsen. The decision, aimed at preparing the company for current realities and ensuring long-term growth, comes after a period of strong expansion where active shoppers grew from 3 million to over 15 million in five years. However, challenges including the war in Europe, supply chain disruptions, soaring inflation, and reduced government subsidies have forced Daraz to refocus on core business, simplify its organization, and improve profitability. The layoffs are part of a broader effort to adjust to a lower growth outlook and prioritize strategic investments for the future.