Alerzo, a B2B e-commerce firm that digitizes commerce and payments procedures between FMCG suppliers and informal merchants, has announced its second wave of layoffs, affecting 15% of its workforce.
Alerzo first laid off 5% of its workforce depending on performance, with certain employees transferring to digital technologies such as an internal ERP. Following that, due to the need for enhanced profitability, a second round of layoffs occurred, affecting 15% of their full-time personnel across departments, lowering the employment base to 800.
The company’s quick growth since its foundation resulted in mass employment, with over 3,000 young people hired within the first five years, but the current economic climate has had an impact. As a result, Alerzo has had to revise its business model in order to focus on generating great unit economics.
According to the corporation, this necessitated a reduction in its employees despite previous aggressive hiring methods that supported growth and expansion across the country in recent years.
Alerzo believes that the restructure will improve customer service while pursuing long-term growth.
The e-commerce platform claims it will pay out all contractual notice periods, provide an additional one-month severance, continue HMO coverage – including covered family members – until the end of 2023, and provide job placement and counselling services to those affected.