About 100 workers affected as retrenchment process raises questions of transparency and fairness
SINGAPORE: As Lazada employees returned to work in the new year, an unsettling atmosphere greeted them. Meeting rooms at the e-commerce giant’s Singapore headquarters were fully booked, and some staff received last-minute invitations to discussions where they were informed they had lost their jobs.
Employees described the retrenchment process, which began on Wednesday (Jan 3), as “opaque” and “unfair.” Several staff members reportedly cried as the layoffs, affecting approximately 100 employees so far, came as a complete surprise. Workers from various departments and all levels of the company have been impacted, with some teams reduced to just a handful of employees.
Lack of Communication
Many affected employees expressed frustration at the lack of clarity surrounding the layoffs. “It’s demoralizing,” one worker said, noting that even star performers and recently promoted staff were among those let go. The severance package offered was described as lower than expected and less generous compared to packages from competitors like Shopee and Grab.
Adding to the distress, meetings were impersonal and brief, often lasting only 20 minutes. Employees were asked to sign severance agreements on the spot, with no offer to buy back stock options or provide counseling support.
Company’s Response
A Lazada spokesperson stated that the layoffs are part of “proactive adjustments” to transform the company into a more agile and streamlined organization. “This transformation necessitates reassessing workforce requirements to future-proof our business and people,” the spokesperson said.
The broader rationale for the retrenchment remains unclear. Employees have speculated about factors such as increasing competition from e-commerce rivals like Shopee and TikTok, which recently invested heavily in Southeast Asia’s e-commerce sector.
Assistance for Affected Staff
Digital Industry Singapore, a government agency supporting the tech sector, is working with Lazada to help affected employees find alternative employment.
Founded in 2012, Lazada serves as the regional headquarters for Alibaba Group’s e-commerce operations in Southeast Asia. The layoffs come despite Alibaba’s recent US$634 million investment into Lazada, highlighting the competitive pressures in the region’s digital commerce space.
As employees continue to navigate the uncertainty, questions linger about the process and timing of the layoffs. “We all have mortgages to pay, families to care for,” one employee said, reflecting the human cost of sudden job loss.
