Lazada Thailand is planning to replace its chief, according to a source close to the e-marketplace operator who requested anonymity.
The source said chief executive Werapong Goo would leave the company to pursue other opportunities.
The company is expected to select chief operating officer Varitha Kiatpinyochai, who has worked for Lazada Thailand for almost eight years, to replace Mr Werapong. Before joining Lazada Thailand, Ms Varitha worked for Macquarie Group.
Lazada Thailand declined to comment on the matter when contacted by the Bangkok Post.
Mr Werapong was the first Thai to be appointed chief executive at Lazada Thailand, joining the company in 2019 after spending several years as a consultant in the field of strategic management at Boston Consulting Group.
Ms Varitha will become the company's second female leader after Jessica Liu, who was the first woman to be appointed to the top job at Lazada Thailand in January 2021.
CNBC reported earlier that Lazada had begun a fresh round of layoffs across Southeast Asia, according to a person with direct knowledge of the matter.
A source familiar with Lazada Thailand previously told the Bangkok Post around 30-50% of staff at the firm would be laid off or rotated to more suitable posts across the company's departments and functions.
As of March 2023, Lazada Thailand employed more than 1,100 people.
Another source familiar with Lazada Thailand said although the company is profitable, under current economic conditions Lazada needs to be leaner and more efficient to compete with strong rivals such as Shopee and TikTok Shop.
"The company brand has been firmly established in the market, so fewer staff are needed and the budget for marketing activities might be cut. The company wants to rotate staff and create a lean organisation," said the source.
According to data analytics provider Creden Data, Lazada Thailand posted a profit of 400 million baht from revenue of 20.7 billion baht in 2022.
Lazada Logistics Thailand generated a profit of 2.9 billion baht from revenue of 16.8 billion during the same period.
According to Singapore venture builder Momentum Works, Shopee gained a 56% share of Thailand's e-commerce gross merchandise value worth US$14.4 billion in 2022, while Lazada secured a 40% share and TikTok a 4% share.
According to a report prepared by market intelligence research firm Cube Asia, Lazada has been facing a tough strategy dilemma for a while. The company had to decide whether to drive top line growth or prioritise profitability, the report noted.
Lazada appears to have chosen the latter option, focusing on profitability for several reasons, according to Cube Asia.
With Shopee's intense push for growth and the entrance of TikTok Shop, competition has intensified, making growth more costly for Lazada.
Both its competitors are also moving towards profitability, particularly Shopee, which has posted several profitable quarters.
This means Lazada needs to restructure its business to become more profit-capable, noted the report.
To achieve parent Alibaba's goal of spinning off Lazada Group, profitability is a vital factor, said Cube Asia.
A spin-off would also mean Lazada Thailand would no longer have unrestricted access to Alibaba's funds, forcing the company to become more self-reliant.