In a significant development, Daraz, Pakistan’s largest eCommerce company, is witnessing key management changes, including the departure of CEO Bjarke Mikkelsen. The company is also reportedly considering layoffs, particularly in higher management positions, as part of a cost-cutting strategy.
Earlier today, Bjarke Mikkelsen announced his resignation as the CEO of Daraz after serving for eight years. James Dong, the current CEO of Lazada Group, another Alibaba subsidiary, will take over as the acting CEO of Daraz on an interim basis.
In a statement to employees, Mikkelsen cited “personal reasons” for his decision to step down and expressed confidence that this move would contribute to a more focused strategy and streamlined business model for the company. He mentioned, “My North Star has always been to build Daraz into a business that is strong enough to survive in our markets for the long term.”
The outgoing CEO emphasized that the structural change is optimal for ensuring Daraz’s long-term success and indicated that he would dedicate some time to prioritizing his family and supporting his wife in her new career.
According to sources within Daraz, Mikkelsen had been primarily acting as a figurehead, implementing decisions from Alibaba. As a former investment banker, he led Daraz for eight years across five countries – Pakistan, Bangladesh, Myanmar, Nepal, and Sri Lanka, serving a population of over 450 million.
The incoming interim CEO, James Dong, is expected to focus on deeper integration between Daraz and sister companies, including Lazada, Trendyol, AliExpress, and Alibaba.com.
Simultaneously, there are reports suggesting that Turkish eCommerce company Trendyol is in talks to acquire Daraz. Some reports even suggest that Daraz is now operating under Trendyol, which is 86% owned by Alibaba. Bjarke Mikkelsen’s departure could potentially signal Trendyol’s takeover of Daraz’s management.
As of now, Daraz has not responded to requests for comments on the potential acquisition by Trendyol. The situation reflects a dynamic period for the eCommerce giant, and further developments are awaited.