After the whole shenanigans about Zalora Indonesia laying off around 25 people in the merchandising department we wrote end of last week, Zalora’s PR team approach us with an explanation about the unfortunate layoff. We did heard that the merchandising team grew too aggressively with imbalanced results, which triggers the layoff even though some people are sceptical, believing there’s more sinister reason behind it.

According to Zalora, the action had to be made to “streamline and focus on our very successful fashion category” which means the team that manages the under-performing category was laid off. Zalora said that the move was regrettable but it had to be done to ensure sustainable growth of the company as it evolves in the past year.

Zalora’s spokeswoman also said that the team members who got laid off are entitled to their full severance package and additional month’s salary as well as support from Zalora for their next career move. Zalora stated that the company will be giving reference letters explaining the situation and recognise the team’s contribution to the company as well as putting them in touch with employment agencies. “We are also committed to being flexible with their job-search as they are serving out their notice, such as with interview timings”, said a company spokeswoman.

Here’s the complete statement from Zalora’s PR:

In regards to your article on April 6th, 2013 on Zalora Indonesia, we would like to give our clarification for your reference.

ZALORA Indonesia’s business model has evolved in the past year, and as part of a move towards ensuring that we continue to grow sustainably, we have taken an approach to streamline and focus on our very successful fashion category. Regrettably, although we are very proud of the excellent team we have, this move had made some jobs unavailable and we have had to let go of a small proportion of our team.

We would like to clarify that aside from being entitled to their full severance package, these employees will be receiving an additional month’s salary. We wish to still recognize the contribution that these employees have made to our growth as a start-up, as such we will be helping to ease them into the next steps in their career.

Our HR department is in the process of putting them in touch with employment agencies, and we will be writing these employees a reference letter in order to explain this unique situation and to recognize their contribution to the company thus far. We are also committed to being flexible with their job-search as they are serving out their notice, such as with interview timings.
Please contact pr@zalora.co.id if you have any further queries – We would be more than happy to clarify.

Thank you for your attention.