Alibaba’s Lazada Implements Fresh Round of Layoffs Across Southeast Asia

         

Alibaba-owned Lazada has begun laying off employees across Southeast Asian markets, affecting hundreds of staff in a bid to reposition the e-commerce giant amid rising competition.

Lazada’s Latest Round of Layoffs

Alibaba-owned Lazada has initiated a new round of staff layoffs across all its markets in Southeast Asia, impacting employees at all levels. Singapore is reportedly the most affected country, with the number of affected employees potentially reaching into the hundreds.

Proactive Workforce Adjustments

While Lazada’s Singapore spokesperson did not confirm the layoffs, the company acknowledged making proactive adjustments to its workforce to create a more agile and streamlined working structure, aligning with future business needs. Lazada emphasized the necessity to reassess workforce requirements and operational structure to ensure its readiness for the future.

Scope of Layoffs and Impact

The layoffs are said to affect various functions including commercial, retail, and marketing, with reports indicating that the process is currently ongoing. Some employees have reportedly received meeting invites from the company but have not been provided with specific details at this time. Lazada, now a subsidiary of Alibaba Group, operates in several Southeast Asian countries such as Singapore, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.

Rising Competition and Market Challenges

Lazada, the third-largest e-commerce player in Indonesia, is facing intensified competition from rivals such as Sea Limited’s Shopee and Tokopedia. Additionally, the emergence of new partnerships, such as the one between GoTo and TikTok, poses further challenges in the Southeast Asian e-commerce landscape.

Leadership Changes and Company Background

Lazada has experienced significant leadership changes in recent years, with CEO roles being filled by various individuals. The parent company Alibaba has also encountered a tumultuous 2023, marked by the abandonment of plans to spin off its cloud business and undergoing a management shake-up.

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