News Desk
B2B e-commerce company Alerzo has undergone its fourth round of workforce downsizing. While speculation suggests it’s a cost-cutting measure to prolong the company’s financial runway, Alerzo maintains it’s aimed at digitalization and building a sustainable business model.
In 2022, Alerzo initiated its first layoffs, releasing over 200 warehouse workers as their roles were digitized. By March 2023, another 400 staff were let go as 14 warehouses in Nigeria closed. Subsequently, in November 2023, 100 more warehouse employees faced layoffs.
The recent February 2024 layoffs affected at least 70 employees, primarily warehouse and junior office staff, despite the company raising undisclosed capital twice in the previous year.
Insiders suggest the layoffs aim to extend Alerzo’s longevity, but the company contends it’s part of a digitalization strategy for long-term sustainability.
Despite financial constraints, Alerzo managed to secure funding through additional funding rounds in April and September 2023, raising undisclosed amounts.
- ATTENTION: Techrectory gives ₦5,000 monthly to our top readers, CLICK HERE to become a winner.
Acknowledging the recent reduction, Alerzo stated it had a workforce of nearly 1,500 employees at the time. While expressing regret over the layoffs, the company ensured severance packages and extended health benefits for the affected employees.
Despite facing financial constraints, Alerzo managed to secure funding through additional funding rounds in April and September 2023, with exact amounts undisclosed.
Founded by Adewale Opaleye in 2018, Alerzo’s funding history includes a pre-seed round in 2020, a $5 million seed round the same year, a notable $10.5 million Series A round, and a discreet Series B round in January 2022.
Techrectory with Agency Report.
ADVERTISMENT
- —Are you looking for a professional website design company to build your website? Then, contact AGGITAL WORKS.
