Lazada job cuts, union support.
Lazada cuts 5% of Southeast Asia workforce; union ensures support for affected staff.
Key Points
Lazada’s retrenchment is being guided by tripartite frameworks with FDAWU coordinating under NTUC networks to provide employment support, including jobs and skills assistance via NTUC's Employment and Employability Institute and NTUC's Professionals, Managers and Executives unit, and aligning the process with the Tripartite Advisory on Managing Excess Manpower and the NTUC's Fair Retrenchment Framework.
Singapore-based staff are specifically connected to Lazada’s One office on Bras Basah Road, highlighting the local footprint of the retrenchment activity in Singapore.
The FDAWU union has a history with Lazada’s retrenchment, having expressed disappointment in a January 2024 retrenchment for not being notified, after which the union helped secure improved retrenchment benefits for laid-off workers.
The retrenchment occurs within a wider regional context of job cuts, with MOM data showing 3,830 retrenchments in Q1 2026, and notable cuts at Shopee (about 8% of its developer workforce) as well as Gardenia and Standard Chartered announcing significant workforce reductions.
Lazada cut 5% of its Southeast Asian workforce on June 23, 2026, including an undisclosed number of staff in Singapore, CNA reported. The e-commerce platform said it is reviewing selected roles to keep the business "focused, efficient, and aligned with current business needs."
Unlike its January 2024 retrenchment — which caught unions off guard — Lazada this time notified the Food, Drinks and Allied Workers Union (FDAWU) in advance. Affected staff at the company's "Lazada One" office on Bras Basah Road began receiving direct notifications in the afternoon, Mothership reported.
Lazada's 2024 Union Dispute Shaped This Retrenchment
In January 2024, Lazada retrenched roughly 30% of its workforce without telling FDAWU first. The union publicly expressed disappointment. The Ministry of Manpower stepped in, and Lazada was pushed to raise severance packages to meet industry norms, The Business Times reported.
This time, FDAWU General Secretary Sankaradass S. Chami said the union received advance notice, calling it a sign of "positive labor-management relationship and trust built over time," according to CNA. The union will give affected members one year of continued union membership and access to training grants. It will also connect them to NTUC's Employment and Employability Institute and its Professionals, Managers and Executives unit for job matching and skills support.
Singapore Workers Covered by Tripartite Retrenchment Frameworks
The layoffs must follow Singapore's Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, as well as NTUC's Fair Retrenchment Framework. Lazada pledged to cooperate with government agencies and to engage affected staff "directly and with dignity," The Straits Times reported.
The Straits Times estimates Lazada employs around 760 staff in Singapore, which would put the local impact at roughly 38 to 40 roles. The company has not confirmed a Singapore-specific figure. The S$1,200 training grant negotiated after the 2024 cuts is expected to serve as a baseline for support this time, according to The Business Times.
Lazada Pushes Back on 'AI-Driven' Cuts Narrative
Lazada explicitly said these cuts are not AI-driven — a notable distinction from rivals. Shopee confirmed cutting 8% of its global developer workforce earlier in June to prioritize AI features, Bloomberg reported. Standard Chartered's CEO Bill Winters recently said the bank plans to cut 7,000 to 8,000 roles by 2030, replacing "lower-value human capital" with machines, according to The Guardian.
Lazada told The Business Times its cuts are purely "organizational." Industry analyst Derrick Teo of Elitez Group said the era of "rapid hiring and heavy subsidies" in e-commerce is over. Companies are now focused on "controlling costs and improving profitability" instead.
Singapore Retrenchments Hit Highest Quarterly Level Since 2023
Lazada's cuts land during a rough stretch for Singapore workers. The Ministry of Manpower reported 3,830 total retrenchments in Q1 2026 — the highest quarterly figure since 2023. Retrenchments among degree holders rose from 2.6 to 3.1 per 1,000 employees, suggesting mid-to-senior professionals are most at risk, CNA reported.
Manpower Minister Dr. Tan See Leng noted a bright spot: the six-month re-entry rate for residents improved to 60.7%, pointing to a still-resilient job market. Other firms cutting jobs recently include Gardenia, which retrenched 141 workers in May as it moved bakery production to Johor Bahru, and Amazon, which shut its Singapore grocery delivery service, according to The Straits Times.
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