Lazada retrenches 5% of staff in the region, including roles in Singapore

Lazada has retrenched 5 per cent of its Southeast Asian workforce, including an undisclosed number of employees in Singapore.

On Tuesday (June 23), a Lazada spokesperson told AsiaOne that the e-commerce platform is "reviewing selected roles across Southeast Asia". 

The company did not disclose which roles were affected in the exercise, but said the review is in line with its "continued effort to ensure the organisation remains focused, efficient, and aligned with current business needs".

The cuts are not part of artificial intelligence (AI) initiatives, Business Times reported.

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 support is accorded to affected employees".

It is also working with relevant government entities and agencies across other markets, where required, to "ensure the process is managed in accordance with local requirements and with due consideration for those impacted".

In response to AsiaOne's queries, FDAWU general secretary Sankaradass S Chami said that Lazada had informed the union about the restructuring exercise in advance.

He said that the union will "work closely" with Lazada management to support affected employees through the transition, providing them with a year of union membership and training grant support.

"Where roles are affected, employees will be engaged directly and with care, respect, and dignity," said the Lazada spokesperson. 

"We are committed to supporting affected employees through the transition with relevant guidance and support, in line with applicable requirements."

Founded in 2012, the leading Southeast Asian e-commerce company is headquartered in Singapore, with markets in Malaysia, Thailand, Indonesia, Vietnam and Philippines.

Lazada's layoffs comes after its rival Shopee cut 8 per cent of its developer workforce in June.

Meta also announced job cuts in May, with about 8,000 people affected as it moves towards reassigning more jobs related to AI.

Lazada's last round of layoffs was in January 2024, impacting both senior and junior workers across the region.

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laili.abdeen@asiaone.com