E-commerce giant Lazada has laid off around 5 per cent of its workforce across Southeast Asia following an internal review of roles across its regional operations.
The move was announced on Jun. 23 and affects employees in multiple markets, including Singapore.
According to reports by The Business Times, the decision was made after evaluating business needs, role requirements and organisational efficiency.
Company Says Layoffs Are Not Related To AI
Lazada did not disclose the exact number of employees affected or which departments were impacted.
However, reports stated that the latest retrenchment exercise is unrelated to any artificial intelligence (AI) initiatives.
Affected employees were informed on Jun. 23, with the company’s human resources team contacting them directly.
Lazada said employees impacted by the cuts will receive support based on the regulations and requirements of their respective countries.
Working With Union In Singapore
In Singapore, Lazada said it is working closely with the Food, Drinks and Allied Workers Union (FDAWU) to ensure affected employees receive the necessary assistance.
For employees in other Southeast Asian markets, the company said it is engaging the relevant government agencies and authorities to manage the retrenchment process responsibly.
Not Lazada’s First Round Of Layoffs
This is the second major retrenchment exercise carried out by Lazada in recent years.
In January 2024, the company laid off an undisclosed number of employees in Singapore without first consulting FDAWU, despite being unionised.
The union later expressed disappointment over the lack of prior consultation, and the matter was subsequently raised with the Ministry of Manpower (MOM).
Following discussions, Lazada agreed to provide enhanced retrenchment benefits to affected employees.
The company also established a dedicated training fund to help workers improve their employability through programmes offered in partnership with NTUC’s Employment and Employability Institute (e2i).
One Of Southeast Asia’s Largest E-Commerce Platforms
Founded in 2012, Lazada became a subsidiary of Chinese technology giant Alibaba in 2016.
Today, the platform operates across six key Southeast Asian markets:
- Singapore
- Malaysia
- Indonesia
- Thailand
- Vietnam
- The Philippines
The latest retrenchment exercise comes amid increasing competition within the e-commerce sector, as companies continue to streamline operations and improve efficiency.