Lazada cuts about 5% of South-east Asia workforce after regional role review

SINGAPORE: E-commerce platform Lazada has confirmed that it has laid off part of its workforce following a review of selected roles across its regional markets, with reports indicating that about 5 per cent of employees across South-east Asia have been affected.

According to The Business Times, the retrenchment exercise impacts roughly 5 per cent of Lazada’s workforce in the region.

The company did not disclose the number of employees affected or identify the specific departments involved.

Lazada said the review was conducted based on business needs, role requirements and organisational efficiency.

Workforce reduction not linked to AI initiatives

The company stressed that the workforce reduction was not linked to any artificial intelligence initiatives.

Lazada currently operates in six South-east Asian markets: Singapore, Malaysia, Thailand, Indonesia, Vietnam and the Philippines.

In a statement, the company said employees affected by the exercise would be treated in accordance with applicable employment requirements in their respective markets.

“Affected employees will be treated in line with applicable requirements in the respective markets,” Lazada said.

The company added that it is working with relevant authorities and government agencies outside Singapore to manage the process and provide support where necessary.

Union engagement in Singapore

In Singapore, Lazada said it would work closely with the Food, Drinks and Allied Workers Union (FDAWU) to ensure that affected employees receive appropriate support during the transition.

The company said it would “ensure that the process is handled responsibly and support is accorded to affected employees”.

FDAWU general secretary Sankaradass S Chami said the union had been informed in advance about the restructuring exercise.

According to Sankaradass, the early notification enabled the union to engage with management and prepare support measures for employees impacted by the layoffs.

“This enables the union to work closely with Lazada management to support affected employees through the transition,” he said.

The union added that affected members would receive one year of continued union membership, along with access to training grant support aimed at helping them upgrade their skills and improve employment prospects.

Sankaradass said: “The union will also work with the company to ensure the exercise is conducted responsibly, in accordance with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment and NTUC’s Fair Retrenchment Framework.”

Latest restructuring move

The retrenchment marks Lazada’s latest workforce restructuring effort amid continued competition in the region’s e-commerce sector.

The announcement comes weeks after rival e-commerce platform Shopee carried out its own round of layoffs earlier in June 2026.

Shopee reportedly cut hundreds of developer positions, representing about 8 per cent of its developer workforce.

The back-to-back workforce reductions at two of the region’s largest e-commerce companies highlight ongoing efforts by technology firms to adjust staffing levels and manage operating costs amid evolving business conditions.

Previous layoffs in 2024

Lazada last undertook a major retrenchment exercise in January 2024, when both senior and junior employees across local and regional functions were affected.

At the time, FDAWU publicly expressed disappointment over the company’s handling of the exercise.

The union said it had not been notified or consulted before the layoffs were carried out, describing the situation as “unacceptable”.