diff --git a/.changeset/olive-points-flash.md b/.changeset/olive-points-flash.md
new file mode 100644
index 0000000000..64b23419de
--- /dev/null
+++ b/.changeset/olive-points-flash.md
@@ -0,0 +1,5 @@
+---
+'@backstage/cli': patch
+---
+
+Switch Webpack minification to use `esbuild` instead of `terser`.
diff --git a/packages/cli/package.json b/packages/cli/package.json
index 3b9cf52893..3c90a11e28 100644
--- a/packages/cli/package.json
+++ b/packages/cli/package.json
@@ -61,7 +61,8 @@
     "commander": "^6.1.0",
     "css-loader": "^6.5.1",
     "diff": "^5.0.0",
-    "esbuild": "^0.14.1",
+    "esbuild": "^0.14.10",
+    "esbuild-loader": "^2.18.0",
     "eslint": "^7.30.0",
     "eslint-config-prettier": "^8.3.0",
     "eslint-formatter-friendly": "^7.0.0",
diff --git a/packages/cli/src/lib/bundler/optimization.ts b/packages/cli/src/lib/bundler/optimization.ts
index 254799f78c..b2119f5b3a 100644
--- a/packages/cli/src/lib/bundler/optimization.ts
+++ b/packages/cli/src/lib/bundler/optimization.ts
@@ -14,10 +14,9 @@
  * limitations under the License.
  */
 
-import { WebpackOptionsNormalized, WebpackPluginInstance } from 'webpack';
-import TerserPlugin from 'terser-webpack-plugin';
+import { WebpackOptionsNormalized } from 'webpack';
 import { BundlingOptions } from './types';
-import { isParallelDefault } from '../parallel';
+import { ESBuildMinifyPlugin } from 'esbuild-loader';
 
 export const optimization = (
   options: BundlingOptions,
@@ -26,16 +25,11 @@ export const optimization = (
 
   return {
     minimize: !isDev,
-    // Only configure when parallel is explicitly overridden from the default
-    ...(!isParallelDefault(options.parallel)
-      ? {
-          minimizer: [
-            new TerserPlugin({
-              parallel: options.parallel,
-            }) as unknown as WebpackPluginInstance,
-          ],
-        }
-      : {}),
+    minimizer: [
+      new ESBuildMinifyPlugin({
+        target: 'es2019',
+      }),
+    ],
     runtimeChunk: 'single',
     splitChunks: {
       automaticNameDelimiter: '-',
diff --git a/yarn.lock b/yarn.lock
index a4c4bb13c6..8901f5b685 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -13761,6 +13761,18 @@ esbuild-linux-s390x@0.14.10:
   resolved "https://registry.npmjs.org/esbuild-linux-s390x/-/esbuild-linux-s390x-0.14.10.tgz#cc4228ac842febc48b84757814bed964a619be62"
   integrity sha512-knArKKZm0ypIYWOWyOT7+accVwbVV1LZnl2FWWy05u9Tyv5oqJ2F5+X2Vqe/gqd61enJXQWqoufXopvG3zULOg==
 
+esbuild-loader@^2.18.0:
+  version "2.18.0"
+  resolved "https://registry.npmjs.org/esbuild-loader/-/esbuild-loader-2.18.0.tgz#7b9548578ab954574fd94655693d22aa5ec74120"
+  integrity sha512-AKqxM3bI+gvGPV8o6NAhR+cBxVO8+dh+O0OXBHIXXwuSGumckbPWHzZ17subjBGI2YEGyJ1STH7Haj8aCrwL/w==
+  dependencies:
+    esbuild "^0.14.6"
+    joycon "^3.0.1"
+    json5 "^2.2.0"
+    loader-utils "^2.0.0"
+    tapable "^2.2.0"
+    webpack-sources "^2.2.0"
+
 esbuild-netbsd-64@0.14.10:
   version "0.14.10"
   resolved "https://registry.npmjs.org/esbuild-netbsd-64/-/esbuild-netbsd-64-0.14.10.tgz#6ec50d9e4547a7579f447307b19f66bbedfd868b"
@@ -13791,7 +13803,7 @@ esbuild-windows-arm64@0.14.10:
   resolved "https://registry.npmjs.org/esbuild-windows-arm64/-/esbuild-windows-arm64-0.14.10.tgz#50ab9a83f6ccf71c272e58489ecc4d7375075f32"
   integrity sha512-OJOyxDtabvcUYTc+O4dR0JMzLBz6G9+gXIHA7Oc5d5Fv1xiYa0nUeo8+W5s2e6ZkPRdIwOseYoL70rZz80S5BA==
 
-esbuild@^0.14.1:
+esbuild@^0.14.1, esbuild@^0.14.10, esbuild@^0.14.6:
   version "0.14.10"
   resolved "https://registry.npmjs.org/esbuild/-/esbuild-0.14.10.tgz#10268d2b576b25ed6f8554553413988628a7767b"
   integrity sha512-ibZb+NwFqBwHHJlpnFMtg4aNmVK+LUtYMFC9CuKs6lDCBEvCHpqCFZFEirpqt1jOugwKGx8gALNGvX56lQyfew==
@@ -18606,7 +18618,7 @@ json5@^1.0.1:
   dependencies:
     minimist "^1.2.0"
 
-json5@^2.1.2, json5@^2.1.3:
+json5@^2.1.2, json5@^2.1.3, json5@^2.2.0:
   version "2.2.0"
   resolved "https://registry.npmjs.org/json5/-/json5-2.2.0.tgz#2dfefe720c6ba525d9ebd909950f0515316c89a3"
   integrity sha512-f+8cldu7X/y7RAJurMEJmdoKXGB/X550w2Nr3tTbezL6RwEE/iMcm+tZnXeoZtKuOq6ft8+CqzEkrIgx1fPoQA==
@@ -25902,7 +25914,7 @@ sort-keys@^4.0.0:
   dependencies:
     is-plain-obj "^2.0.0"
 
-source-list-map@^2.0.0:
+source-list-map@^2.0.0, source-list-map@^2.0.1:
   version "2.0.1"
   resolved "https://registry.npmjs.org/source-list-map/-/source-list-map-2.0.1.tgz#3993bd873bfc48479cca9ea3a547835c7c154b34"
   integrity sha512-qnQ7gVMxGNxsiL4lEuJwe/To8UnK7fAnmbGEEH8RpLouuKbeEm0lhbQVFIrNSuB+G7tVrAlVsZgETT5nljf+Iw==
@@ -28805,6 +28817,14 @@ webpack-sources@^1.4.0, webpack-sources@^1.4.1, webpack-sources@^1.4.3:
     source-list-map "^2.0.0"
     source-map "~0.6.1"
 
+webpack-sources@^2.2.0:
+  version "2.3.1"
+  resolved "https://registry.npmjs.org/webpack-sources/-/webpack-sources-2.3.1.tgz#570de0af163949fe272233c2cefe1b56f74511fd"
+  integrity sha512-y9EI9AO42JjEcrTJFOYmVywVZdKVUfOvDUPsJea5GIr1JOEGFVqwlY2K098fFoIjOkDzHn2AjRvM8dsBZu+gCA==
+  dependencies:
+    source-list-map "^2.0.1"
+    source-map "^0.6.1"
+
 webpack-sources@^3.2.0:
   version "3.2.0"
   resolved "https://registry.npmjs.org/webpack-sources/-/webpack-sources-3.2.0.tgz#b16973bcf844ebcdb3afde32eda1c04d0b90f89d"