Lazada cuts 5% of workforce across SEA

Lazada is laying off 5% of its workforce across Southeast Asia, affecting employees in Singapore, Malaysia, Thailand, Indonesia, Vietnam and the Philippines.

In a statement to MARKETING-INTERACTIVE, the eCommerce giant said that it is reviewing selected roles as part of efforts to ensure the organisation remains focused, efficient and aligned with current business needs.

The company added that affected employees are being engaged directly and will be supported through the transition with relevant guidance and assistance in line with local requirements. 

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In Singapore, Lazada said it is working closely with the Food, Drinks and Allied Workers Union (FDAWU), an affiliate of the National Trades Union Congress (NTUC), to ensure the process is handled responsibly and that support is provided to affected employees.

Across its other Southeast Asian markets, the company added that it is working with relevant government entities and agencies where required to ensure the exercise is conducted in accordance with local requirements and with due consideration for impacted employees.

"Our commitment remains unchanged as we will continue to serve our customers, sellers, brands, and partners, while building a more focused and resilient organisation for the long term," the company told MARKETING-INTERACTIVE. 

The latest exercise comes after Lazada's retrenchment drive in January 2024, which drew criticism from Singapore's labour movement. At the time, the National Trades Union Congress (NTUC) and FDAWU said they were disappointed that the company had carried out layoffs without notifying the union in advance, describing the move as unacceptable and calling on employers to follow fair and responsible retrenchment practices.

Lazada subsequently told local media that the workforce adjustments were part of efforts to transform its operations and build a more agile and streamlined organisation to meet future business needs.

The recent layoffs also come amid broader workforce adjustments across the region's eCommerce sector. Earlier this month, Sea's Shopee reportedly cut approximately 8% of its global developer workforce.

The reductions were said to affect hundreds of employees across roles including quality assurance, although it remains unclear whether the move was directly linked to the company's artificial intelligence initiatives. The cuts came as technology companies worldwide continue to reassess staffing needs while increasing investments in AI.

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