Alibaba-owned e-Commerce startup Lazada begins new round of layoffs across Southeast Asia
Lazada, an e-commerce startup owned by Alibaba, has begun its latest round of layoffs that affect staff across Southeast Asia, according to a report from CNBC, citing a source familiar with the situation. This move follows several media reports about workforce reductions at the Southeast Asian e-commerce company.
The layoffs are affecting employees at all levels across Lazada’s Southeast Asia markets, with the exact number potentially reaching “hundreds,” and Singapore being the most heavily impacted, according to the source who requested anonymity due to the sensitivity of the matter, CNBC reported.
While a Lazada spokesperson in Singapore did not confirm the layoffs, the person told CNBC in an interview on Wednesday: “We are making proactive adjustments to transform our workforce, to better position ourselves for a more agile, streamlined way of working to meet future business needs.”
“This transformation necessitates that we reassess our workforce requirements and operational structure to ensure Lazada is better positioned to future-proof our business and people,” the company added.
Lazada, which operates in Singapore, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, encompasses all functions, including commercial, retail, and marketing, in the layoffs. The source mentioned that the layoffs are taking place this week, and while some employees have received meeting invitations, they have yet to receive specific details.
Founded in 2012, Lazada is the number one online shopping and selling destination in Southeast Asia – present in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Lazada helps more than 100,000 local and international sellers as well as 2,500 brands serve the 560 million consumers in the region through its marketplace platform, supported by a wide range of tailored marketing, data, and service solutions. Lazada offers an excellent customer experience through a wide network of logistics partners and its own first- and last-mile.
Lazada became a subsidiary of Alibaba Group after the Chinese tech giant acquired RedMart in 2016 for $35 million, well below the $55 million venture funding that had gone into the company. Lazada now operates as a subsidiary under the Alibaba International Digital Commerce Group, which also includes AliExpress.