Sudden layoffs at Lazada leave workers sad, in confusion

 

SINGAPORE: When Lazada employees returned to the office in the new year, they could sense something was wrong as all the meeting rooms were booked for consecutive slots.

Some of them even received meeting invitations the night before, or just a few hours before the session, where they were informed that they had been fired. Some had to cancel their leave to return to attend the emergency meeting

Some of them cried, especially on Wednesday (Jan 3) as the news was completely unexpected.

This is what Lazada employees shared with Mediacorp.

This is the description given by three Lazada employees, who were met by Mediacorp on the condition that their identities not be disclosed, about the workforce reduction process, which began to be implemented from Wednesday morning at the regional headquarters of the e-commerce giant in Singapore.

They described the move as "unfair", "non-transparent" and "confusing", sparking concern and speculation among their colleagues due to the lack of transparency.

CNA understands that the layoff is still ongoing. Most of the Lazada employees that Mediacorp met declined to comment, stating that they did not know much.

The three who agreed to be interviewed estimated that close to a hundred people have been notified of their layoffs so far, among colleagues. Those affected are from departments across the company.

Several departments cut large portions of their workforces, they said, with one reducing about 20 to 30 employees to just four or five workers remaining.

Mediacorp has repeatedly contacted Lazada Singapore about the layoffs, which were first reported by The Edge on Wednesday.

COMPANIES ARE DOING 'PROACTIVE RULES'

A spokesman for the company said on Wednesday that the company "is taking proactive steps to transform our workforce, to better position us to create a more agile, streamlined way of working to meet the needs of the business going forward".

Inquiries regarding the level of work stoppages implemented and why the measure was taken remain unanswered. An employee estimated the company has about 8,000 to 10,000 staff in Singapore, including the logistics team.

Mediacorp understands that Lazada Singapore has fired several employees last year, but usually it only affects a few people or specific departments. However, this time, staff from all parts of the company and all levels were affected.

It was "puzzling" given that the three employees said they saw individuals who performed exceptionally well and even those who had just been promoted, and it seemed impossible to know who would be next to meet a similar fate.

HELP AVAILABLE

Digital Industry Singapore, a government office that supports the growth of the technology sector here, stated that it is working closely with Lazada and other government agencies to assist affected workers in providing them with alternative employment opportunities.

Founded in 2022 by Rocket Internet, Lazada was acquired by Alibaba Group in 2016. Lazada Singapore is the regional headquarters for Alibaba's e-commerce business in Southeast Asia.

It has penetrated the market in six countries in the region - Indonesia, Malaysia, the Philippines, Thailand and Vietnam - and the workers shared that they also heard about the layoffs from their colleagues abroad.