Lazada lays off about 5% of workforce in Southeast Asia, including S'pore

E-commerce platform Lazada has laid off about 5 per cent of its workforce across Southeast Asia, following a review of certain roles across its regional markets.

The move was announced on Jun. 23, according to The Business Times (BT).

Unrelated to AI initiatives: BT

While Lazada did not specify which roles were affected, it stated that the review took into account business needs, role requirements and organisational efficiency.

BT reported that the layoffs are not linked to any artificial intelligence-related initiatives.

According to The Straits Times, affected employees were informed on Jun. 23, with the company's human resources team reaching out to them directly.

Lazada told BT that affected employees would be supported in accordance with requirements applicable in each market.

In Singapore, the company said it is working with the Food, Drinks and Allied Workers Union (FDAWU) to manage the process responsibly and ensure affected employees receive the necessary support.

In other markets, it is engaging the relevant government entities and agencies.

Previous layoff in 2024

This is not the first time Lazada has carried out job cuts.

In January 2024, the company laid off an undisclosed number of employees in its Singapore office without first consulting the FDAWU, under which it is unionised.

The union had voiced disappointment over the lack of consultation, and the issue was subsequently raised with the Ministry of Manpower (MOM).

Following the union's intervention, Lazada agreed to enhanced retrenchment benefits for the affected staff.

It also set up a dedicated training fund, allowing FDAWU to provide employment and employability support to affected members in collaboration with NTUC's Employment and Employability Institute (e2i).

Lazada was founded in 2012 and became a subsidiary of Chinese tech giant Alibaba Group Holding in 2016.

The company operates in six core Southeast Asian markets: Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.