Alibaba&#x27s Lazada cuts workers across Southeast Asia in contemporary round of layoffs

Alibaba&#x27s Lazada cuts workers across Southeast Asia in contemporary round of layoffs


Lazada is the third-premier e-commerce player in Indonesia, just after Sea Limited’s Shopee and Tokopedia, according to Momentum Functions.

Matt Hunt | Lightrocket | Getty Photos

SINGAPORE — Alibaba-owned Lazada commenced its most up-to-date round of layoffs on Wednesday, a person with immediate information of the matter explained to CNBC, following a slew of media stories about cuts at the Southeast Asian e-commerce big.

Workforce across all Southeast Asia marketplaces from all concentrations are afflicted, in accordance to the person who declined to be named owing to the sensitive nature of the issue. Those people influenced could be “in the hundreds,” with Singapore the most impacted, explained the human being.

Lazada’s Singapore spokesperson did not affirm that workers had been currently being laid off, but explained to CNBC on Wednesday: “We are making proactive changes to renovate our workforce, to better placement ourselves for a additional agile, streamlined way of working to meet future enterprise needs.”

“This transformation necessitates that we reassess our workforce specifications and operational construction to assure Lazada is far better positioned to long run-evidence our organization and persons,” the enterprise extra.

Lazada operates across Southeast Asia nations around the world namely Singapore, Indonesia, Malaysia, the Philippines, Thailand and Vietnam.

According to CNBC’s source, all features which includes industrial, retail and advertising and marketing will be influenced by the layoffs, which the man or woman said are happening this 7 days. Some employees have received assembly invites from the business but have however to obtain any facts, they mentioned.

Lazada turned a subsidiary of Alibaba Group right after the Chinese tech huge obtained management of it in 2016. The firm operates below Alibaba International Electronic Commerce Group, which also consists of AliExpress, Trendyol and Daraz.

Soaring opposition

The e-commerce organization is experiencing rigid levels of competition from rivals this kind of as Sea Confined‘s Shopee and TikTok Shop in the area. TikTok is a short movie app owned by Chinese tech huge ByteDance.

In December, Indonesia’s tech large GoTo and TikTok announced a partnership wherever Tokopedia and TikTok Shop Indonesia’s companies will be combined into an enlarged Tokopedia entity. GoTo is a merger in between Indonesia’s trip-hailing big Gojek and the country’s e-commerce platform Tokopedia.

As component of the offer, TikTok will consider a controlling stake of 75.01% and make investments $1.5 billion into the entity over time.

The deal came right after Indonesia banned e-commerce on social media platforms in Oct to secure community merchants, forcing TikTok to halt its e-commerce service TikTok Shop.

Lazada’s management crew has found quite a few adjustments in the previous years.

In June 2022, Lazada Team CEO Chun Li was replaced by James Dong, who was chief government of Lazada Thailand and Vietnam.

In 2020, Li took in excess of the part from Pierre Poignant, who succeeded Lucy Peng in December 2018, just nine months following getting up the reins.

2023 was a tumultuous 12 months for its father or mother corporation Alibaba, which scrapped plans to spin off its cloud business and went by way of a management shake-up.

— CNBC’s Naman Tandon and Lauren Choo contributed to this report.



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