JAKARTA - Lazada has cut 5 percent of its workforce in Southeast Asia. A number of employees in Singapore are affected, although the number is not disclosed.
This layoff comes amid stiff competition in the Southeast Asian e-commerce industry. In early June, Shopee cut hundreds of developer positions globally. In May, Amazon also announced job cuts in Singapore.
As reported by The Straits Times, quoted Tuesday, June 23, the news of Lazada's layoffs came from a source who knew the problem. When contacted on June 23, a Lazada spokesperson said the company was "reviewing a number of selected positions across Southeast Asia".
"If there are positions that are affected, employees will be invited to communicate directly with care, respect, and dignity," said a Lazada spokesperson, as quoted by The Straits Times.
Lazada stated that it would provide guidance and support for affected employees in accordance with applicable regulations.
In Singapore, Lazada employees are based at Lazada One, Bras Basah Road. The Straits Times reported that affected employees were informed on June 23 by the company's human resources team.
Lazada is also working with the Food, Drinks and Allied Workers Union or FDAWU. This union represents some workers in the food, beverage, and related industries in Singapore.
Secretary General of FDAWU Sankaradass S. Chami said Lazada had informed the union in advance of the layoffs.
"This early notification reflects the positive relationship between workers and management and the trust that has been built over time," Sankaradass said, quoted by The Straits Times.
He said Lazada would give union membership for one year and support for training grants for affected union members.
The report also said Lazada had laid off employees in October 2023 and January 2024. In January 2024, Lazada was highlighted for dismissing employees without consulting FDAWU.
At that time, the trade union was disappointed and brought the issue to the Singapore Ministry of Manpower or MOM.
In the 2024 layoff, FDAWU then negotiated an increase in severance benefits. Initially, employees were offered two weeks' pay for each year of employment, below industry norms.
After the discussion facilitated by MOM, some employees received an additional two weeks of salary per year of employment. Others received support for training of 1,200 Singapore dollars.
The government task force for retrenchment or layoffs is responsible for saying that Lazada has informed them of this restructuring. The restructuring is said to be part of a wider organizational restructuring.
The task force spokesperson said Lazada was committed to providing severance packages in accordance with the Singapore tripartite guidelines on responsible labor surplus management and layoffs.
Lazada was founded in 2012 and became a subsidiary of Alibaba Group Holding in 2016. The company operates in Singapore, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
LinkedIn data shows Lazada has about 760 employees in Singapore. A Straits Times check on June 23 found at least 10 job openings in Bangkok, Manila and the Philippines. A job opening for Singapore was uploaded a month earlier. However, on the Lazada website, no job openings were found.
Lazada has just held its 14th anniversary campaign, its first major regional campaign in 2026. At the same time, artificial intelligence features on the platform are becoming more visible as they begin to be integrated into product pages.
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