Eight months after laying off 400 employees, the e-commerce startup Alerzo, which raised $10.5 million in a Series A round in 2021, has laid off at least 100 staff.
A spokesmanfor the company acknowledged that at least 100 positions were impacted, although they withheld the precise number.
“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.”
According to TechCabal, the majority of the impacted workers were employed at Alerzo’s 40 warehouses.
They said that installing new software removed the requirement for several approval channels in those warehouses, creating many jobs that were unnecessary. They said that at least two employees were let go from each of the warehouses.
The severance payout for the laid-off workers will include one month’s income. Alerzo added that HMO plans would be available to impacted workers through the end of the year.
