- Lazada, Alibaba’s Singapore e-commerce firm, laid off staff in a regional restructuring this week.
- Both junior and senior employees across departments were affected by the January 3rd layoffs.
- The cuts amid turbulence for Lazada and Alibaba, as rivals like Shopee threaten market share.
Restructuring at Lazada
Lazada, the Singapore-based e-commerce company owned by Alibaba, laid off an undisclosed number of employees this week in what appears to be a restructuring of its regional operations.
According to inside sources, both junior and senior staff across multiple departments were affected by the layoffs on January 3rd. The company has scheduled meetings with individual employees and the human resources department through January 5th to notify affected staff.
Uncertainty in turbulent times
It remains unclear exactly how many people will lose their jobs. Lazada did not respond to requests for comment on the matter.
The layoffs come during a turbulent period for Lazada and its parent company, Alibaba. Last August, former Lazada Singapore CEO Loh Wee Lee departed for a position with a Hong Kong retail group. The company also currently lacks an in-house communications team in Singapore.
At the corporate level, Alibaba replaced its CEO, Daniel Zhang, in September after its stock plunged 75% over three years.
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Rising competition
Intensifying competition from rival Southeast Asian e-commerce providers like Shopee contributed to Alibaba’s struggles.
Lazada, founded in 2012, stood largely unchallenged in the region’s nascent e-commerce industry for years. However, new players with strong financial backing have threatened Lazada’s market share across Southeast Asia.
This latest round of job cuts appears to signal a shift in strategy and leadership structure for Lazada under new CEO James Dong. The company seems poised to streamline costs and refocus operations to regain its competitive edge.
The weeklong restructuring likely portends more uncertainty ahead for Lazada’s workforce.
