Fashion e-commerce platform Zalora has laid off about 100 employees across Southeast Asia—roughly 15% of its regional workforce—as part of what the company calls an “organisational restructuring” aimed at streamlining operations and improving financial health.
The Malaysianist first reported the layoffs that were implemented recently.
Zalora later confirmed the restructuring in a statement. “These necessary structural changes reflect the need to adapt to a highly competitive market, recalibrate our energy, and streamline operations to ensure the financial health of Zalora,” said the company.
Zalora added that the affected staff would be provided with support during the transition.
The layoffs affect multiple markets in the region, including Malaysia, where Zalora has maintained a sizable presence with a large warehouse and operations hub.
The company’s decision is part of a broader trend among regional e-commerce firms recalibrating growth expectations amid rising costs, shifting consumer behaviour, and intensifying competition. Zalora is up against dominant horizontal marketplaces like Shopee and TikTok Shop, global fast-fashion disrupter Shein, and vertical fashion players such as Pomelo (Thailand), Love, Bonito (Singapore), and HijUp (Indonesia).
Founded in 2012, Zalora was once seen as Southeast Asia’s answer to ASOS. It is a part of Global Fashion Group (GFG), a European-listed firm that also runs fashion platforms in Latin America (Dafiti) and Australia (The Iconic).
But in recent years, Zalora has struggled to maintain its growth trajectory. In 2018, it laid off nearly its entire marketing team in Singapore and relocated the function to Kuala Lumpur. It also exited Vietnam and Thailand to concentrate on core markets including Malaysia, Singapore, Indonesia, the Philippines, Hong Kong, and Taiwan.
According to its latest financial filings accessed by DATA VANTAGE, Zalora recorded a significant jump in revenue in 2023, reaching $46.23 million, up 47.6% from $31.32 million in 2022. This recovery in top-line growth suggests the fashion e-commerce firm was able to drive stronger sales across its core markets.
However, the revenue growth was overshadowed by a steep decline in profitability. Zalora swung back into the red with a loss of $10.83 million in profit before interest and tax (PBIT), reversing the $0.92 million profit recorded in 2022.
Losses were also deeper across other profitability metrics. Profit before tax from continuing operations widened to negative $14.17 million in 2023, compared to a smaller loss of $1.46 million the year before—an 869% decline.
These figures suggest that while Zalora managed to grow its revenue base significantly in 2023, escalating costs, operational inefficiencies, or market challenges weighed heavily on its bottom line.
The widening losses likely contributed to the company’s decision to restructure and trim headcount in early 2025, as pressure mounts to restore financial sustainability in a hypercompetitive e-commerce landscape.
