Lazada’s Recent Layoffs and Strategic Shifts in Singapore
Lazada, a prominent regional e-commerce player, made headlines on January 3 with the announcement of undisclosed staff layoffs in Singapore. Responding to inquiries, a Lazada spokesperson emphasized proactive adjustments in the workforce. They explained that the purpose behind these layoffs is to enhance agility and efficiency for future business needs.
Details about the extent of layoffs in Singapore and Southeast Asia, as well as potential severance packages, were not disclosed. The spokesperson clarified that the transformative initiative requires a reassessment of workforce requirements and operational structures to fortify Lazada against future challenges.
This move follows a reported round of layoffs in October 2023, signaling ongoing changes within the company. Founded in 2012, Lazada operates in six countries. Alibaba Group Holdings acquired Lazada in 2016. Thus, amplifying Alibaba’s presence in Southeast Asia.
Lazada operates directly under Alibaba
Post-restructuring in March 2023, Lazada operates under Alibaba International Digital Commerce (AIDC). AIDC encompasses e-commerce platforms Daraz and Trendyol, along with AliExpress. Speculation about AIDC’s potential initial public offering (IPO) in the United States emerged in May 2023.
AIDC demonstrated robust financial growth, reporting a 53% revenue increase for Q3 2023 compared to the previous year, positioning itself as a major competitor to Shopee, another Singapore-based e-commerce platform.
In December 2023, Alibaba invested $634 million in Lazada, bringing its 2023 investment to over $1.8 billion. Alibaba’s consistent financial backing since 2022 reflects intense competition in the e-commerce industry.
Regarding the recent layoffs, DISG executive director Chan Ih-Ming pledged close collaboration with Lazada and relevant government agencies. The goal is to support affected employees in finding alternative opportunities. Chan Ih-Ming acknowledged the need for companies to strategically adapt to economic conditions. Furthermore, he expressed confidence in the long-term growth potential of Singapore’s tech sector amid the continuous expansion of Asia’s digital economy.
DISG, a collaborative venture comprising the Economic Development Board, Enterprise Singapore, and Infocomm Media Development Authority. It also functions as a unified interface. This interface facilitates government engagement with the technology sector, strategically aligning with broader goals to foster growth and innovation in Singapore’s dynamic digital landscape.
