Lazada settles Singapore layoffs as Alibaba invest another $310 million
Lazada has finally settled payments to ex-staff that were laid off in January 2024. Just in time for parent Alibaba to inject another $310 million!
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Lazada has finally settled the severance package it offered to former employees who were suddenly laid off in early January 2024, just in time to receive a $310 million capital infusion by parent company Alibaba.
You can read our coverage of the initial event, but to sum things up, Lazada initially offered its former staff a payoff equivalent to two weeks’ salary for every year of service, which is below industry norms.
According to MoM guidelines, the prevailing norm for unionised employees is one month’s salary for each year of service, and Lazada’s actions triggered the National Trade Union Congress (NTUC) and the Food, Drinks and Allied Workers Union (FDAWU) to step in and negotiate a new settlement.
Lazada will now pay eligible former employees an additional two weeks’ pay per year of service, (restoring the payout to the norm), while non-union former staff receive $1,200 for training support.
The conclusion to this saga comes amid reports that parent company Alibaba has injected another $310 million into Lazada, on top of the $2.4 billion that was invested in 2023.
Also Read: Lazada received extra $2.4 billion from Alibaba last year, so why is it axing so many jobs?
Feature image: Vulcan Post
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