Lazada, an e-commerce company in Southeast Asia, has recently undergone an internal restructuring, resulting in layoffs across its Singapore operations. Lazada proactively made these adjustments to transform its workforce to accommodate a more agile and streamlined work approach that aligns with future business needs.
- Layoff Details: The exact number of affected employees in Singapore or Southeast Asia remains undisclosed, as does whether they received a severance package.
- Previous Layoffs: This restructuring is not the first; another round of layoffs was conducted in October 2023.
- Previous Funding: In December 2023, Alibaba invested an additional $634M in Lazada, pushing its total investment in the firm to over $1.8B that year.
- Market Standing: The layoffs come amidst speculation about a potential IPO in the US in 2024. The unit reported a 53% revenue increase YoY for Q3 2023.
- Company History: Established in 2012, Lazada operates in six countries, including Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. It became an Alibaba subsidiary in 2016, expanding Alibaba’s presence in Southeast Asia.
- Changes in Structure: Following a business unit split by Alibaba in March 2023, Lazada now operates under Alibaba International Digital Commerce (AIDC), which also includes e-commerce platforms Daraz, Trendyol, and online store AliExpress.
Digital Industry Singapore (DISG) is working closely with Lazada to assist affected employees in finding new job opportunities. Despite individual companies having to adjust to current economic conditions, the region’s digital economy continues to expand, and Singapore’s tech sector shows promising long-term growth.
