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Lazada Initiates Layoffs Amid Stiff Market Competition

2024.01.05

 

Key Takeaways

  • Lazada, owned by Alibaba, begins layoffs affecting employees across Southeast Asia, with Singapore hit hardest.
  • The move comes amid escalating competition from Shopee and TikTok Shop, and follows Alibaba’s tumultuous year.

Extensive Layoffs at Lazada

Lazada, a prominent e-commerce platform in Southeast Asia and a subsidiary of Alibaba, has commenced a significant round of layoffs. Employees from various Southeast Asian markets, encompassing all levels of the organization, are affected, with the number potentially reaching the hundreds. Singapore appears to be the most impacted. While official confirmation of layoffs was not given, Lazada indicated a strategic workforce transformation for future business needs.

Strategic Workforce Adjustments

Lazada’s operational changes aim to streamline and make the company more agile, amidst a rapidly evolving e-commerce landscape. This restructuring includes reassessing the workforce and operational structures. The layoffs span multiple functions, including commercial, retail, and marketing departments, with employees currently awaiting further details from the company.

Alibaba’s Influence and Competitive Landscape

Since its acquisition by Alibaba in 2016, Lazada has operated under the Alibaba International Digital Commerce Group. However, it now faces fierce competition from Sea Limited’s Shopee and the emerging TikTok Shop, a ByteDance-owned platform. The recent strategic partnership between Indonesia’s GoTo and TikTok, which aims to integrate Tokopedia and TikTok Shop Indonesia, intensifies the competitive environment for Lazada.

Lazada’s Leadership Changes and Parent Company Challenges

Lazada’s leadership has witnessed several changes in recent years, including a CEO transition in 2022 from Chun Li to James Dong. These shifts reflect the company’s ongoing efforts to navigate a dynamic market. Additionally, 2023 was a challenging year for Alibaba, marked by a decision not to spin off its cloud business and a major management overhaul.

 


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