DistantNews
Support us
🇳🇵 Nepal /Economy & Trade

Daraz Nepal trims workforce amid South Asia restructuring

From Kathmandu Post · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Daraz Nepal laid off approximately 30 employees as part of a wider South Asia restructuring aimed at improving efficiency and profitability.
  • The job cuts coincide with the departure of Managing Director Aanchal Kunwar, who will be replaced by Ben Yi as acting managing director.
  • Current and former employees link the layoffs to a regional effort to simplify operations and reduce costs, with some questioning the timing of recent hires.

Daraz Nepal has reduced its workforce by about 30 employees in recent weeks, a move linked to a broader restructuring across South Asia by the Alibaba-backed e-commerce company. The company aims to streamline operations and boost profitability amid increasing pressure on tech firms to operate more efficiently.

When I returned to Nepal, my goal was not only to grow a business but to build a capable organisation, strong leadership and a robust digital ecosystem for Nepal. I am proud of what we achieved together.

— Aanchal KunwarIn a statement announcing the leadership transition, the outgoing Managing Director of Daraz Nepal reflected on her tenure.

The job cuts occur alongside a leadership transition. Managing Director Aanchal Kunwar will step down on July 1 after four and a half years, transitioning to an advisory role. Ben Yi, currently managing director of Daraz Bangladesh, will assume the role of acting managing director for Daraz Nepal, with Ratish Luintel appointed chief commercial officer.

I was told to handwrite a resignation letter on the spot. I didn’t even get the chance to say goodbye to my colleagues.

— Former employeeDescribing the immediate nature of her dismissal.

While Daraz described the changes as a "leadership transition plan," current and former employees indicate the layoffs are part of a regional strategy to simplify operations and cut costs. Signs of downsizing appeared earlier this year with a recruitment freeze. Some former employees reported being asked to resign immediately during what were presented as performance reviews, with access to company systems revoked promptly.

Reducing staff can be one option to keep a company afloat.

— Former employeeCommenting on the necessity of workforce reductions for company sustainability.

One affected former employee acknowledged that workforce reductions can be necessary for financial sustainability but questioned the fairness of hiring staff shortly before eliminating positions. "It doesn’t seem fair to hire someone one month and remove them the next in the name of restructuring," the former employee stated. Access to company systems was immediately revoked, and company equipment was collected before the employee left the meeting room.

It doesn’t seem fair to hire someone one month and remove them the next in the name of restructuring.

— Former employeeQuestioning the timing of layoffs after recent hiring.
DistantNews Editorial

Originally published by Kathmandu Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog