Lazada Thailand is reportedly preparing to replace its chief executive, according to an anonymous source familiar with the matter. The current CEO, Werapong Goo, is said to be leaving the company to pursue other opportunities. It is expected that Varitha Kiatpinyochai, the chief operating officer of Lazada Thailand, will be selected as his replacement. Varitha has been with the company for nearly eight years and previously worked for Macquarie Group.
Lazada Thailand has declined to comment on the potential leadership change. Werapong was the first Thai CEO appointed at Lazada Thailand, joining the company in 2019 after serving as a consultant in strategic management at Boston Consulting Group. If Varitha succeeds him, she will become the second woman to lead the company after Jessica Liu, who was appointed in January 2021.
CNBC previously reported that Lazada had initiated a round of layoffs across Southeast Asia, as confirmed by an anonymous source. However, the exact number of affected employees is unknown. Another source familiar with Lazada Thailand suggested that the company is aiming to become leaner and more efficient in order to compete with strong rivals like Shopee and TikTok Shop. Economic conditions and increased competition have prompted Lazada to prioritize profitability and streamline its operations.
In 2022, Lazada Thailand generated a profit of 400 million baht from a revenue of 20.7 billion baht, according to data analytics provider Creden Data. Lazada Logistics Thailand, a subsidiary of Lazada, achieved a profit of 2.9 billion baht from revenue of 16.8 billion baht during the same period. Shopee currently holds a 56% share of Thailand’s e-commerce gross merchandise value, followed by Lazada with 40%, and TikTok with 4%, according to Singapore venture builder Momentum Works.
Lazada has been facing strategic challenges, as it must decide whether to prioritize top-line growth or profitability. The company appears to have chosen the latter, given the intensifying competition and cost associated with growth. Both Shopee and TikTok Shop are also moving towards profitability, making it necessary for Lazada to restructure its business to improve its profit capabilities. Cube Asia, a market intelligence research firm, emphasized that profitability is a crucial factor if Lazada intends to spin off from parent company Alibaba and become more self-reliant.
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