Lazada has revealed plans to reduce its workforce by 5% across Southeast Asia as part of a business adjustment. In Singapore, workers affected by this move will receive dedicated support in partnership with the Food, Drinks and Allied Workers Union.
- 5% of Lazada’s workforce in Southeast Asia to be cut
- Affected Singapore employees to get union-backed support
- Focus on responsible layoff process and transition assistance
What happened
Lazada recently announced it will reduce its workforce by 5% across its Southeast Asian operations. This move is part of a strategic review aimed at maintaining efficiency and aligning staff with the company’s current business objectives. The announcement comes after the company’s last workforce reduction in Singapore in January 2024.
In Singapore, Lazada is collaborating closely with the Food, Drinks and Allied Workers Union (FDAWU) to manage the layoffs responsibly. The goal is to provide affected employees with appropriate support throughout their transition, including union membership and access to training grants.
Why it feels good
This approach marks a significant improvement from earlier retrenchments, where communication and consultation with unions had been lacking. This time, Lazada has informed the union beforehand, emphasizing fairness and responsibility in handling the layoffs.
The partnership with FDAWU ensures that workers receive strong support, including access to resources from the broader labour movement such as skills training and job search assistance. This collaborative effort helps ease the impact on employees and prioritizes their well-being during a challenging period.
What to enjoy or watch next
As Lazada navigates its streamlining process, it will be important to watch how this responsible approach influences workforce management practices within the e-commerce sector in Singapore and beyond. Other companies could take note of the benefits of union collaboration.
For affected employees, opportunities for reskilling and reemployment support are promising next steps. Observers and workers alike can look forward to how these measures facilitate smoother transitions and potentially inspire more humane corporate layoffs across the region.