(CTN News) – Lazada, the Southeast Asian e-commerce giant owned by Alibaba, has initiated a new round of layoffs, according to a source familiar with the matter.
This comes after numerous media reports about job cuts at the company. The layoffs will impact employees at all levels across Southeast Asia, with Singapore being the most affected.
While Lazada’s Singapore spokesperson did not confirm the layoffs, they stated that the company is making proactive adjustments to its workforce to better align with future business needs. Lazada operates in several Southeast Asian countries, including Singapore, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
The layoffs will affect all functions, including commercial, retail, and marketing. The source mentioned that the layoffs are taking place this week, although employees have yet to receive specific details.
Lazada became a subsidiary of Alibaba Group in 2016 and operates under Alibaba International Digital Commerce Group, which also includes AliExpress, Trendyol, and Daraz.
GoTo and TikTok have recently formed a partnership in response to tough competition in the region. This collaboration involves merging Tokopedia and TikTok Shop Indonesia’s businesses to create an expanded Tokopedia entity.
GoTo, a merger between Gojek and Tokopedia, is Indonesia’s tech giant. As part of the agreement, TikTok will gradually acquire a controlling stake of 75.01% and invest $1.5 billion into the entity.
This partnership arose after Indonesia banned e-commerce on social media platforms, leading TikTok to suspend its e-commerce service, TikTok Shop.
Meanwhile, Lazada, whose parent company is Alibaba, has undergone significant leadership changes in recent years, with James Dong taking over as CEO in June 2022, replacing Chun Li.
Alibaba also experienced a tumultuous year in 2023, abandoning plans to spin off its cloud business and undergoing a management shake-up.