By Kimberley Kao and Raffaele Huang

Lazada, Alibaba's e-commerce platform in Southeast Asia, is cutting 5% of its workforce, according to people familiar with the matter.

The company notified the affected employees on Tuesday, some of the people said. The layoffs affected staff across Southeast Asia, the people said.

"Lazada is reviewing selected roles across Southeast Asia" as part of efforts to keep the company focused and efficient, and aligned with its business needs, the company said in an emailed statement.

"We are committed to supporting affected employees," Lazada added.

Competition in the e-commerce sector in Southeast Asia remains highly intensive as companies seek higher profitability and increasingly adopt artificial-intelligence tools to boost efficiency.

Last year, Lazada had a market share of 11% in the region, down from 24% in 2020, according to research firm Momentum Works. The company has been among the early adopters of AI in the sector, seeking to drive growth by boosting the experience of merchants and consumers.

Earlier this month, Shopee, the largest online shopping site in Southeast Asia, started letting go of employees as it invests in AI to drive growth, The Wall Street Journal reported. Its U.S.-listed parent, Sea Ltd., has said that it will focus on growth and invest in its logistics capabilities. Shopee had a 53% market share last year in the region, data from Momentum Works showed.

Lazada's revenue in the fiscal year ended March fell 3% from a year ago, according to parent Alibaba. The Chinese company's international commerce retail business, which includes Lazada, AliExpress and Trendyol, contributed about 12% of total revenue.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

June 23, 2026 06:23 ET (10:23 GMT)

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