The Big Read: E-commerce layoffs - heyday of online shopping could be over, with consumers on the losing end

 The Big Read: E-commerce layoffs - heyday of online shopping could be over, with consumers on the losing end output 

Some have questioned whether the heyday of online shopping may be coming to an end because to layoffs at e-commerce companies Lazada and Shopee within the last two years.

Lazada reduced its workforce in order to prepare for upcoming difficulties such a greater reliance on technology and more intricate marketing plans.

Yet, experts claim that the job losses also indicate a shift away from a "growth at all costs" mentality and toward a greater emphasis on turning a profit.

They also say that because of how quickly the sector is evolving and how fiercely the businesses are competing, a major player may finally withdraw.

If that occurs, consumers may no longer be able to take advantage of the current low delivery costs and appealing discounts as competition declines.

SINGAPORE: Industry observers here expressed surprise at the e-commerce company Lazada's abrupt decision to lay off workers last month, which also moved some of the impacted workers to tears. output 

After discussions between Lazada and the workers' union, some of the issues raised by the former employees have since been addressed with the offer of an additional unannounced support package.

ToDAY chatted with a number of business analysts and industry professionals, but the Lazada move raises a more important query: Could e-commerce, which had seen a boom during the COVID-19 pandemic, be coming to an end?

Before Lazada abruptly laid off employees, Shopee, its primary rival, had also carried outthree rounds of layoffs affecting Singaporean employees in 2022. 

Experts have noted that the trend of layoffs at e-commerce companies is similar to those of technology companies as Meta, Google, Twitter (now X), and Grab; however, Lazada, which has its regional headquarters in Singapore, has insisted that its circumstances are distinct. 

According to a source close to Lazada, these tech companies may have overhired in an attempt to increase their market share before cutting back when earnings became their first priority.

Lazada's layoffs, according to the source, are "a business transformation exercise".

"It is to get the whole company geared around two very core pillars that we are going to drive moving forward: Best price, and best customer experience."

It is to align the entire organization around the two fundamental pillars that will guide our future direction: the best possible price and the best possible customer experience.