Lazada is laying off around 5% of its workforce across Southeast Asia as part of a review to improve organisational efficiency and align roles with current business needs. The affected employees were notified on or before June 23, 2026, according to company sources [1, 2, 3, 4, 5, 6, 7].

The Singapore workforce affected in this round will receive support coordinated with the Food, Drinks and Allied Workers Union (FDAWU). The union, informed in advance, is providing benefits such as one year of free membership and training grants. FDAWU General Secretary Sankaradass S Chami said, "Lazada informed the union about the layoffs in advance, enabling us to work closely with management to support affected employees through the transition." He added the union will ensure the exercise follows the Tripartite Advisory on Managing Excess Manpower and NTUC’s Fair Retrenchment Framework [1, 4, 5, 6].

Lazada stressed the layoffs are not related to any artificial intelligence initiatives amid recent tech industry changes [3, 4]. CEO Derrick Teo of Elitez Group commented on shifting industry dynamics, saying, "Platforms are now expected to process more transactions while controlling costs and improving profitability. The integration of AI is allowing companies to scale without the massive headcount growth seen during the pandemic." [5]

The ecommerce firm, headquartered in Singapore, operates in six Southeast Asian countries: Singapore, Malaysia, Indonesia, Thailand, Vietnam and the Philippines [2, 3, 4, 7]. It last conducted layoffs in January 2024, a move criticized for not consulting unions before the reductions [1, 2, 4, 5, 6]. This time, the company engaged with FDAWU in advance.

Lazada's cuts follow a trend in the region’s digital economy toward focusing on efficiency and profitability. Earlier this month, Shopee laid off about 8% of its global developer workforce, and Amazon cut jobs in Singapore while shifting focus from local grocery delivery to international shipping [1, 4, 5, 6].

The latest layoffs mark another step as Lazada adjusts its workforce to better reflect business priorities amid evolving market conditions.