Exclusive: Retail startup Alerzo fires 100 employees in fresh layoffs

Alerzo, the e-commerce startup that raised $10.5 million in a Series A round in 2021, has laid off at least 100 people eight months after it laid off 400 employees. A company spokesperson confirmed that at least 100 roles were affected but did not share an exact figure. 

“As a company, we’ve invested and built an end-to-end warehouse management system that has improved process automation,” the company said in the statement. “These technological investments have enhanced warehouse performance, including our turnover and sales metrics. Unfortunately, this has meant streamlining and consolidating certain warehouse roles.” 

Two sources with knowledge of Alerzo’s business confirmed that most of the affected employees worked at the company’s 40 warehouses. They said implementing new software eliminated the need for several lines of approval in those warehouses, leading to several redundant roles. At least two members of staff were fired in each of the warehouses, they said. 

The laid-off employees will be paid one month’s salary as part of their severance package. Alerzo also said that HMO packages for affected employees would remain active until the end of the year.