Lazada undertook a significant reduction in its workforce.
On Tuesday (2 January), the e-commerce giant announced the termination of over 100 employees, spanning various departments including commercial and marketing.
The layoffs, which took effect the following day, were conducted with little to no prior notice, leaving many staff members in a state of shock and emotional distress.
This decision is indicative of the broader trends in the sector, where companies are increasingly streamlining operations to stay agile and cost-effective.
Some shed tears upon hearing the retrenchment
According to CNA, several individuals received meeting invitations either on the night before or just a few hours before the distressing session during which they were notified about the loss of their job.
Certain individuals had to revoke their scheduled leaves to attend the impromptu meeting.
Several individuals, particularly on Wednesday (Jan 3), shed tears as the news was entirely unforeseen, as reported by employees to CNA.
This is not an isolated incident, as Lazada’s competitor, Shopee, has also undergone several rounds of layoffs in 2022.
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Lazada responds
In a statement issued to CNBC, a Lazada Singapore spokesperson said that the e-commerce giant is adjusting to ‘meet future business needs’.
“We are making proactive adjustments to transform our workforce, to better position ourselves for a more agile, streamlined way of working to meet future business needs,” the spokesperson told the English daily.
Several posts, presumably from individuals who were laid off by Lazada, have emerged on the Chinese social media platform Xiao Hong Shu.
One user disclosed that the retrenchment package adhered to the guidelines issued by the Ministry of Manpower (MOM) in Singapore.
On the flip side, it is also understood that the e-commerce giant carried out unexpected retrenchments without informing the workers’ union beforehand, according to the National Trades Union Congress (NTUC) and Food, Drinks and Allied Workers Union (FDAWU).
The worker organizations find the sudden layoffs unacceptable and have raised the issue with the Ministry of Manpower (MOM), following NTUC’s statement on Friday.
