Alerzo, the B2B e-commerce startup digitizing commerce and payments processes between FMCG suppliers and informal retailers, has announced its second round of layoffs, resulting in the dismissal of 15% of its staff.
Alerzo initially let go 5% of staff based on performance, with certain positions transitioning to digital systems, including an internal ERP. Subsequently, due to a requirement for increased profitability, a second round of layoffs ensued, impacting 15% of their full-time staff across departments, reducing the employee base to a total of 800.
The company’s rapid growth since inception led to hiring in large numbers, over 3,000 youths were employed within five years of existence, but the current economic climate has had an impact. In response, Alerzo has had to make adjustments to its business model in order to focus on achieving strong unit economics.
This, according to the company, required the reduction of its workforce despite previous aggressive hiring practices in the past few years, which enabled growth and expansion throughout the country.
Alerzo believes that the restructuring will enable better service to customers, while it pursues sustainable growth.
To those impacted, the e-commerce platform says 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.