Job Cuts Hit Lazada's Southeast Asian Operations
Jakarta. Having secured $1.8 billion (Rp 27.92 trillion) in funding throughout 2023, Lazada, one of Southeast Asia's largest e-commerce operators, has recently laid off an undisclosed number of its workforce, affecting employees in six countries.
The news was confirmed by an affected employee in Indonesia who preferred to remain anonymous. According to the source, the layoffs extended to almost all C-level executives in Singapore, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
"Human resources, marketing, and commercial operations will now fall under the supervision of the company's regional executives," the source told the Jakarta Globe on Thursday.
However, specific details regarding the total number of affected employees remain uncertain. "Some departments experienced a 50 percent reduction, while others witnessed the termination of all their employees," the source added.
A Lazada spokesperson acknowledged the layoffs in Singapore, stating, "We are making proactive adjustments to transform our workforce, positioning ourselves for a more agile, streamlined way of working to meet future business needs," as reported by Straits Times on Wednesday.
The Singapore-based firm operates under Alibaba International Digital Commerce (AIDC), which includes other e-commerce platforms such as Daraz and Trendyol, along with the online store AliExpress.
These recent job cuts coincide with speculation about AIDC's potential initial public offering in the United States in 2024. "AIDC is going public, which means Lazada needs to turn a profit and to achieve that, they are cutting costs," the source said.
Since it acquired Lazada in 2016, Alibaba has injected funds repeatedly, including a $1 billion investment in 2017 and a $2 billion investment in 2018. Alibaba's total investment in Lazada throughout 2022 amounted to over $1.6 billion.
In 2023, Lazada received three additional funding rounds. In April 2023, Alibaba invested $352.9 million; in July 2023, it injected $845.44 million.
By December 2023, Alibaba had invested an additional $634 million, bringing its total investment in the company to over $1.8 billion for the year.
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