SINGAPORE (ANN/THE STRAITS TIMES) – Regional e-commerce platform Lazada implemented undisclosed staff layoffs in Singapore, citing proactive adjustments for a more agile operational structure. This move follows a previous round of layoffs in October 2023.
In response to queries from The Straits Times, a Lazada spokesman said: “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.”
Established in 2012, Lazada, present in six countries, became a subsidiary of Alibaba Group Holding in 2016, facilitating the Chinese tech giant’s expansion in Southeast Asia.
The spokesman declined to disclose how many workers in Singapore or Southeast Asia were affected and whether staff had received a severance package.
Following Alibaba’s restructuring into six main business units in March 2023, Singapore-based Lazada operates under Alibaba International Digital Commerce (AIDC).
The recent job cuts coincide with speculation about AIDC’s potential 2024 IPO in the United States.
Despite this, the unit reported a 53 per cent increase in revenue for the quarter ending September 2023, positioning itself as a significant competitor to fellow Singapore-based e-commerce platform Shopee.
In December 2023, Alibaba pumped USD634 million (SGD842 million) into Lazada, pushing its investment in the firm to more than USD1.8 billion in 2023.
Alibaba has repeatedly injected Lazada with funds since 2022 amid growing competition within the e-commerce industry.
Commenting on the layoffs, Digital Industry Singapore (DISG) executive director Chan Ih-Ming said: “DISG is working closely with Lazada and relevant government agencies to assist affected employees in seeking alternative employment opportunities.
“While individual companies have to decide how to best position their business and workforce in the light of current economic conditions, Asia’s digital economy continues to expand and we are confident in the long-term growth potential of Singapore’s tech sector.”
DISG is a joint office of the Economic Development Board, Enterprise Singapore and Infocomm Media Development Authority. Its aim is to change the way the Government engages with the technology sector, by serving as a single interface for the industry.
