Lazada layoffs: E-commerce firm to cut 5pc of Southeast Asian workforce

SINGAPORE, June 24 — Regional e-commerce heavyweight Lazada will retrench 5 per cent of its Southeast Asian workforce, including in Singapore, as the company pivots toward a leaner operational model.

A Lazada spokesperson confirmed on June 23 that the company is “reviewing selected roles across South-east Asia,” adding that affected staff will be engaged with “care, respect and dignity,” The Straits Times reported.

The move signals a broader cooling period for the region’s digital economy. This follows a string of cuts by rivals, including Shopee’s global developer layoffs earlier this month and Amazon’s shift in Singapore from local grocery fulfilment to international shipping.

According to Derrick Teo, CEO of manpower consultancy Elitez Group, the era of “growth at all costs” and heavy subsidies has ended.

“Platforms are now expected to process more transactions while controlling costs and improving profitability,” Teo noted. He added that the integration of AI is allowing companies to scale without the massive headcount growth seen during the pandemic.

The layoffs first surfaced as online chatter on Reddit before being confirmed on June 23. Affected employees, based largely at the Lazada One office on Bras Basah Road, were notified directly by the human resources team.

In a notable shift in corporate diplomacy, Lazada coordinated this exercise with the Food, Drinks and Allied Workers Union (FDAWU).

FDAWU General Secretary Sankaradass S. Chami praised the advance notification as a sign of a “positive labour-management relationship.” Affected union members will receive one year of membership and training grant support.

This collaborative approach stands in stark contrast to Lazada’s January 2024 retrenchments, where the company bypassed the union entirely, a move the FDAWU then branded “unacceptable” and which required intervention from the Ministry of Manpower (MOM).

The current restructuring is being monitored by the Taskforce for Responsible Retrenchment and Employment Facilitation. A spokesperson for the task force confirmed that Lazada’s packages align with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.

Founded in 2012 and acquired by Alibaba Group in 2016, Lazada remains the second-largest e-commerce player in Singapore. However, its regional market share dipped in 2025 as competitors grew at a faster clip.

While Lazada officially attributes the cuts to “business needs and organisational efficiency,” industry analysts suggest the move is a necessary response to a more aggressive and competitive Southeast Asian landscape.