Layoffs in Pakistan

Pakistan-based fintech startup SadaPay has laid off approximately 80 employees, representing about 30% of its workforce, including several C-suite executives. The abrupt layoffs were announced by Acting CEO Omer Salimullah in a company meeting, with no prior warning given to staff. This cost-cutting move comes just a month after the company's strategic acquisition by Turkish fintech firm Papara and a recent equity injection. Operating in a challenging socioeconomic and regulatory environment in Pakistan, SadaPay, which offers digital payment cards and services, faces difficulties common to startups navigating political instability, unclear regulations, and a tough economic climate that includes reliance on international loans.

In January 2024, Pakistani B2B e-commerce startup Dastgyr made a significant strategic shift by laying off 80% of its workforce. This drastic reduction comes despite the company raising a substantial $37 million in Series A funding in mid-2022 for expansion. The move reflects a broader trend of strategic realignment within the tech industry, as companies like Daraz and Retailo Technologies also adjust to tough market conditions and economic challenges. For Dastgyr, this appears to be a pivot towards ensuring business sustainability and efficiency by focusing on core operations, highlighting the volatile nature of the startup ecosystem where rapid growth can be followed by swift adjustments.

In July 2022, Airlift, Pakistan's leading startup and most-funded company in the country, announced it was permanently shutting down, effectively laying off its entire workforce. The Lahore-based quick-commerce firm, which had raised $85 million at a $275 million valuation just months earlier, failed to secure a new financing round after investors were unable or unwilling to wire funds in a timely manner. Operating in eight Pakistani cities with a 30-minute delivery model for groceries and essentials, the capital-intensive business succumbed to a severe funding crunch, dealing a significant blow to Pakistan's nascent startup ecosystem.

In June 2022, Pakistani logistics tech startup Truck It In laid off approximately 30% of its workforce as part of a business overhaul to confront global economic uncertainty. The company, which had digitized logistics for hundreds of businesses and thousands of truckers, stated the move was necessary to recalibrate its strategy toward sustainable growth and optimized operations. While the exact number of employees affected wasn't specified, the layoffs followed a trend seen in other regional startups like Airlift and Swvl. Truck It In offered generous severance packages and assistance with alternate employment to impacted staff, emphasizing its commitment to a leaner operational model while remaining bullish on Pakistan's digital freight future.

Airlift representing approximately 31% of its workforce on 2022-05-25.