Lazada to cut 5% workforce amid Southeast Asia restructuring push

Lazada is laying off around 5% of its workforce across Southeast Asia, impacting employees in Singapore, Malaysia, Thailand, Indonesia, Vietnam and the Philippines as part of a wider organisational review, according to multiple media reports.

The e-commerce company said the move is aimed at refining its structure to better align with current business priorities and long-term efficiency goals.

In conversation with Marketing Interactive, Lazada said it is “reviewing selected roles as part of efforts to ensure the organisation remains focused, efficient and aligned with current business needs.”

Employee support measures

Affected employees are being engaged directly and will receive support throughout the transition in line with local regulatory requirements across each market.

It is also stated in media reports, that the firm remains committed to a responsible process while managing workforce changes across the region.

Union coordination in Singapore

In Singapore, Lazada is working with the Food, Drinks and Allied Workers Union (FDAWU), an affiliate of the National Trades Union Congress (NTUC), to ensure the retrenchment process is handled appropriately.

FDAWU general secretary Sankaradass S Chami said the union was informed in advance and is working with the company to support impacted employees.

Eligible union members will receive additional support, including one year of union membership and training grant assistance.

Company commitment reiterated

The company  emphasised that its core business focus remains unchanged despite the restructuring.

“Our commitment remains unchanged as we will continue to serve our customers, sellers, brands, and partners, while building a more focused and resilient organisation for the long term,” the company said to Marketing Interactive.

The leadership at the firm added, “We are committed to supporting affected employees through the transition with relevant guidance and support, in line with applicable requirements,” in response to media queries.

Previous layoffs recalled

This latest round of job cuts follows a retrenchment exercise in January 2024, which previously drew criticism from Singapore’s labour movement over consultation concerns.

At the time, NTUC and FDAWU said they were disappointed that the company had proceeded without prior notification, calling for stronger adherence to responsible retrenchment practices.

Wider sector pressure

The layoffs come amid broader restructuring across Southeast Asia’s e-commerce sector, with rivals also adjusting headcount amid cost pressures and shifting technology priorities.

Earlier this month, Sea’s Shopee reportedly cut about 8% of its global developer workforce, reflecting ongoing recalibration across tech-driven companies as investment in automation and artificial intelligence increases.

Lazada, founded in 2012 and acquired by Alibaba Group in 2016, operates across six Southeast Asian markets with Singapore serving as its regional headquarters.