Coupang cuts logistics workforce as orders slip after data breach

SEOUL, January 14 (AJP) - Coupang has cut more than 6,000 logistics workers over the past month through unpaid leave and a pullback in hiring as order volumes decline following a recent personal data breach, industry sources said Wednesday.

Coupang Fulfillment Services, the e-commerce company’s logistics arm, notified full-time workers — including regular and contract employees — at major fulfillment centers nationwide in mid-December that they could apply for unpaid leave. More than 5,000 workers have taken up the offer over a month, the sources said.

Hiring has also slowed sharply. In December, CFS hired about 1,400 fewer workers than in the previous month, a decline believed to be concentrated among short-term and day laborers. Combined with unpaid leave applicants, the reduction brings the workforce contraction to about 6,400 workers over the past month.

Industry officials said day-labor shifts are increasingly being shortened. Coupang’s annual job fairs in major regions such as Gyeonggi Province, Daegu and Daejeon are also not expected to be held this year.

The workforce adjustments come as user activity and spending show signs of strain. According to app analytics service Mobile Index, Coupang’s daily active users fell to 14.8 million by late December, down 17.7 percent from early in the month. Payment volume declined 7.7 percent between the first week of November and the third week of December.

At the same time, rival platforms appear to be benefiting. Following controversy surrounding Coupang’s data breach and its handling of the incident, orders at competitors such as SSG.com and Market Kurly rose by 10 to 15 percent, according to industry estimates.