Noon, the Saudi Arabia-based e-commerce platform, has reportedly laid off 10% of its employees at its Dubai office to reduce costs, with the layoff affecting roles in marketing and advertising, as reported by Bloomberg. The move is part of the company’s effort to streamline its operations amid a challenging economic environment. Noon, founded in 2016, is considered by bankers as a long-term candidate for potential public listing. In 2021, founder Mohamed Alabbar stated that investors, such as the PIF, would inject $2 billion to help improve Noon’s infrastructure. However, the firm may not require the funds, according to Alabbar’s interview with Bloomberg.
The layoffs at Noon follow those at Kitopi, which is backed by SoftBank. In 2022, Kitopi reduced its workforce by 2%. Alabbar said there are currently no plans to sell shares in Noon. Noon is among the global tech companies that are downsizing. According to a website called layoffs.fyi, 553 global tech companies have laid off around 166,004 employees in just three months of this year.
Noon has operations in the UAE, Saudi Arabia, and Egypt, with plans for further expansion in the Middle East. The company has been actively expanding its presence in the region through partnerships with retailers and other e-commerce players. Noon has recently teamed up with companies such as Lulu Hypermarket, Carrefour, and Amazon to offer more products to customers in the UAE and Saudi Arabia.
Noon’s management stated that the company’s focus on growth and expansion will not be affected by the layoffs. “Noon remains committed to its strategy of growth and expansion in the region,” the company said in a statement. Despite the layoffs, Noon is still considered to be a major player in the e-commerce industry, and it is expected that the company will continue to compete in the region, particularly in the UAE, where e-commerce is projected to grow significantly over the next few years.
As e-commerce continues to grow in the region, Noon will likely face stiff competition from other players, including established companies such as Amazon and emerging startups. The company will need to focus on offering a unique value proposition to its customers and invest in technology and logistics to remain competitive.