Islamabad, 9 February 2023 (GNP): Daraz CEO Bjarke Mikkelsen announced in a statement that the company is laying off 11% of its workforce across the Daraz Group.
ICT analyst, Nasheed Malik stated: “In the last quarter of 2022, funding declined causing job layoffs, starting with Daraz in Pakistan. Startups have prioritized growth over profitability and cash flow, leading to a continuous cash burn.”
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According to him, for the first 10 years of its existence, Daraz neglected revenues in favor of client acquisition during its beginning phase and subsequent app expansion. However, because of Pakistan’s present economic crisis, the company was forced to fire employees from its upcoming projects that had nothing to do with its main source of revenue.
Hence, after the announcement by Daraz, employees were informed by the company’s Managing Director, Ehsan Saya, that the company was restructuring to ensure future growth.