Lazada cuts 5% of workforce across Southeast Asia, Singapore workers affected will get union support

The last time Lazada cut jobs in Singapore was in January 2024.

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SINGAPORE: Lazada is laying off 5 per cent of its workforce in Southeast Asia, it said in response to queries from CNA on Tuesday (Jun 23).

The e-commerce company said that it is "reviewing selected roles" across the region as part of a continued effort to ensure the organisation "remains focused, efficient and aligned with current business needs".

"We are committed to supporting affected employees through the transition with relevant guidance and support, in line with applicable requirements," it added.

In Singapore, Lazada said that it is working with the Food, Drinks and Allied Workers Union (FDAWU) to ensure the process is handled responsibly, and support is accorded to affected employees.

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"Across other markets, we are also working with relevant government entities and agencies, where required, to ensure the process is managed in accordance with local requirements and with due consideration for those impacted."

Mr Sankaradass S Chami, FDAWU's general secretary, said that the company informed the union about the layoffs in advance, adding that the union is working with it to support affected members and workers.

The company will provide affected union members with one year of union membership and training grant support.

Mr Sankaradass also said that the union will work with Lazada to ensure that the layoffs will be conducted responsibly, in accordance with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, asl well as the Fair Retrenchment Framework of the National Trades Union Congress (NTUC).

FDAWU will also provide further support, including jobs and skills assistance where needed, and by connecting affected union members to the labour movement’s network such as NTUC's Employment and Employability Institute, and NTUC's Professionals, Managers and Executives unit.

The last time Lazada had a retrenchment exercise in January 2024, FDAWU said it was disappointed at not being notified or consulted before it happened, calling it "unacceptable".

Earlier this month, e-commerce company Shopee cut jobs in Singapore. About 8 per cent of Shopee's developer workforce across the globe was affected.

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