Lazada joins wave of e-commerce firms implementing job cuts
Lazada is laying off five per cent of its workforce in Southeast Asia, including Singapore, joining the recent wave of retrenchments being carried out by other e-commerce firms operating in the region.
A Lazada spokesperson told Singapore media on Tuesday that it is "reviewing selected roles" across Southeast Asia, but did not confirm which positions will be affected.
The spokesperson added that the changes in its workforce are part of the company's efforts to ensure it "remains focused, efficient, and aligned with current business needs."
"We are committed to supporting affected employees through the transition with relevant guidance and support, in line with applicable requirements," the spokesperson told The Straits Times.
Lazada, headquartered in Singapore, is one of the largest e-commerce operators in Southeast Asia. It has operations in Indonesia, the Philippines, Malaysia, Singapore, Thailand, and Vietnam.
The spokesperson for the company said told Channel News Asia that it is working with relevant government entities and agencies in other markets to ensure that its workforce changes are compliant with local requirements.
Lazada's Singapore layoffs
In Singapore, The Straits Times reported that impending job cuts in Lazada first emerged weeks ago on social media platform Reddit.
Affected employees were informed by the company's human resources team about their status on June 23, according to the report.
Lazada's spokesperson said the company is coordinating with the Food, Drinks, and Allied Workers Union (FDAWU) to ensure its job cuts are handled responsibly.
Sankaradass S Chami, general secretary of FDAWU, confirmed that Lazada informed the union in advance about its layoffs.
Lazada will provide eligible union members who are affected by the cuts with one year of union membership and training grant support, according to Chami.
The union will also offer jobs and skills assistance to employees affected.
A spokesperson from Singapore's Taskforce for Responsible Retrenchment and Employment Facilitation also confirmed that Lazada informed the task force about its workforce changes.
"Lazada is committed to providing a retrenchment package aligned with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment," the taskforce's spokesperson told The Straits Times.
Lazada is the latest e-commerce firm in Southeast Asia to retrench employees. Its rival, Shopee, reportedly also laid off about eight per cent of its developer workforce globally.
Amazon, which is headquartered in the United States, also eliminated a "small number of roles" in its Singapore operations.
