Lazada cuts 5% of workforce across Southeast Asia, Singapore workers affected will get union support

SINGAPORE: Lazada is laying off 5 per cent of its workforce in Southeast Asia, including Singapore, saying it is part of continued efforts to ensure that the company "remains focused, efficient and aligned with current business needs".

"We are committed to supporting affected employees through the transition with relevant guidance and support, in line with applicable requirements," the e-commerce giant said in response to CNA's queries on Tuesday (Jun 23).

Lazada did not respond to queries about which job roles were affected, saying only that it is "reviewing selected roles" across the region.

The company operates in six Southeast Asian markets: Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

In Singapore, Lazada said it is working with the Food, Drinks and Allied Workers Union (FDAWU) to ensure that the process is handled responsibly, and support is accorded to affected employees.

"Across other markets, we are also working with relevant government entities and agencies, where required, to ensure the process is managed in accordance with local requirements and with due consideration for those impacted," it added.

Mr Sankaradass S Chami, FDAWU's general secretary, said that Lazada informed the union about the layoffs in advance, adding that the union is working with it to support affected members and workers.

The company will provide affected union members with one year of union membership and training grant support.

Mr Sankaradass also said that the union will work with Lazada to ensure that the layoffs will be conducted responsibly, in accordance with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, as well as the Fair Retrenchment Framework of the National Trades Union Congress (NTUC).

FDAWU will also provide further support, including jobs and skills assistance where needed, and by connecting affected union members to the labour movement’s network, such as NTUC's Employment and Employability Institute, and NTUC's Professionals, Managers and Executives unit.

The last time Lazada had a retrenchment exercise in January 2024, FDAWU said it was disappointed at not being notified or consulted before it happened, calling it "unacceptable".

Founded in 2012, Lazada was acquired by the Alibaba Group in 2016. Its office in Singapore is the regional headquarters of Alibaba's e-commerce ventures in Southeast Asia.

Lazada's latest retrenchment exercise came on the back of e-commerce company Shopee cutting jobs in Singapore earlier this month. About 8 per cent of Shopee's developer workforce across the globe was affected.