Coupang Fulfillment Services: Coupang cuts logistics workforce as orders slip after data breach

Coupang Fulfillment Services: Coupang cuts logistics workforce as orders slip after data breach

Coupang Cuts 6,000 Logistics Jobs Amid Post-Breach Decline in Orders

South Korea’s e-commerce giant Coupang has reduced its logistics workforce by over 6,000 employees in the past month, responding to a sharp drop in order volumes following a recent data breach. Coupang Fulfillment Services (CFS), the company’s logistics arm, offered unpaid leave to full-time workers including regular and contract employees at fulfillment centers nationwide in mid-December. More than 5,000 workers accepted the offer, while hiring slowed significantly, with 1,400 fewer workers brought on in December compared to the previous month. The cuts primarily affected short-term and day laborers, with reports of shortened shifts and the cancellation of annual job fairs in key regions like Gyeonggi Province, Daegu, and Daejeon.

The workforce reductions coincide with a decline in user activity and spending. By late December, Coupang’s daily active users had fallen 17.7% to 14.8 million, while payment volumes dropped 7.7% between early November and mid-December, according to app analytics firm Mobile Index. Meanwhile, competitors such as SSG.com and Market Kurly saw order increases of 10–15%, suggesting customers shifted spending amid backlash over the breach and Coupang’s response. The company has not yet confirmed the full impact of the incident on its operations.

Source: https://www.ajupress.com/view/20260114101748398

Coupang Fulfillment Services TPRM report: https://www.rankiteo.com/company/coupang-fulfillment-services

"id": "cou1768379475",
"linkid": "coupang-fulfillment-services",
"type": "Breach",
"date": "1/2026",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"
{'affected_entities': [{'customers_affected': 'Daily active users declined '
                                              'from 14.8 million (down 17.7%)',
                        'industry': 'Retail/Logistics',
                        'location': 'South Korea',
                        'name': 'Coupang',
                        'type': 'E-commerce company'}],
 'data_breach': {'type_of_data_compromised': 'Personal data'},
 'date_publicly_disclosed': '2024-01-14',
 'description': 'Coupang has reduced its logistics workforce by over 6,000 '
                'workers through unpaid leave and hiring cutbacks following a '
                'personal data breach. The breach has led to a decline in user '
                'activity and spending, benefiting rival platforms.',
 'impact': {'brand_reputation_impact': 'Decline in user activity and orders, '
                                       'benefiting competitors',
            'data_compromised': 'Personal data',
            'operational_impact': 'Workforce reduction of over 6,000 logistics '
                                  'workers',
            'revenue_loss': 'Payment volume declined 7.7% between November and '
                            'December'},
 'references': [{'date_accessed': '2024-01-14', 'source': 'AJP'}],
 'title': 'Coupang Data Breach and Workforce Reduction',
 'type': 'Data Breach'}
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