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Lazada Cuts 5% of Staff as Southeast Asian E-Commerce Intensifies

Southeast Asian e-commerce giant Lazada is shedding 5% of its workforce, a move that follows a sharp decline in regional market share. The Alibaba-owned platform notified employees of the layoffs on Tuesday, citing a strategic need to streamline operations as competition for profitability accelerates across the region.

Lazada Cuts 5% of Staff as Southeast Asian E-Commerce Intensifies

The company stated it is reviewing selected roles to better align with its current business needs and maintain efficiency. This restructuring comes as Lazada faces mounting pressure from rivals in a landscape where artificial intelligence is increasingly deployed to capture consumer attention and manage logistics costs.

Data from Momentum Works highlights the scale of the challenge: Lazada’s regional market share slipped to 11% last year, down from 24% in 2020. Revenue for the fiscal year ended in March also saw a 3% dip, according to parent firm Alibaba. The platform is not alone in these adjustments; Shopee, which currently holds a 53% market share, has also initiated workforce reductions while shifting capital toward AI-driven growth and logistics infrastructure.

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