Lazada Thailand plans to replace CEO, former COO may take over

[Ebrun Original] On January 25, according to a report by the Bangkok Post, an insider revealed that Lazada Thailand is planning to replace its CEO and has chosen to appoint COO Varitha Kiatpinyochai to take over the position. The former CEO (Werapong Goo) will leave Lazada and seek other employment opportunities.

It is reported that Werapong was the first Thai local to be appointed as CEO of Lazada Thailand. He joined the company in 2019, having previously worked for years as a strategic management consultant at the Boston Consulting Group. Varitha, who will take over, is an integral figure in the company and has been working at Lazada Thailand for nearly eight years. Before joining Lazada Thailand, she had worked at the Macquarie Group.

Varitha will be the second female leader of the company following Jessica Liu, who became Lazada Thailand's first female CEO in January 2021. A reliable source revealed that alongside the major layoffs at Lazada, there will also be personnel changes at senior levels, with approximately 30-50% of the company's employees being dismissed or transferred to more suitable positions in various departments.

As of March 2023, Lazada Thailand still employed over 1,100 staff. The Bangkok Post analysis points out that although the company has been profitable, in the current economic conditions, Lazada needs to become more streamlined and efficient, reducing unnecessary expenses in staffing and marketing to compete with strong rivals such as Shopee and TikTok Shop.

In fact, with Shopee making significant adjustments and the strong entry of TikTok Shop, the competition in the Thai market is intensifying, resulting in the increasing cost of growth for Lazada.

Currently, Lazada's focus has shifted from driving revenue growth to considering profitability. Achieving self-reliance has become a key driver behind the business restructuring and personnel changes at Lazada.

According to data from analysis provider Creden Data, Lazada Thailand generated a revenue of 20.7 billion baht and a profit of 400 million baht in 2022. Meanwhile, its affiliate logistics company, Lazada Logistics Thailand had revenues of 16.8 billion baht and a profit of 2.9 billion baht during the same period.

Data from Momentum Works shows that in 2022, Shopee secured a 56% share of the 144 billion USD total value of Thailand’s e-commerce, while Lazada closely followed with a 40% share.