Bloomberg reported today (September 19) that Sea Limited — the parent company of Shopee — is preparing to fire three per cent of its Shopee employees in Indonesia.
This is part of its regional job cut exercise, which also affects some staff in Singapore. It is unclear how many other markets are also affected, however, it is reported that the layoffs affect staff in human resources, regional operations, marketing, and product and engineering.
Shopee said in a joint statement with the Creative Media and Publishing Union (CMPU) that employees affected by these job cuts will be given “appropriate compensation packages” in line with market norms.
In addition, Shopee said that it will render employment facilitation and assistance, including career coaching and job matching services via CMPU’s network and the National Trades Union Congress’ e2i (Employment and Employability Institute).
In an internal memo, the management said that “this was a very difficult decision to make”, and it will strive to “offer a fair package” for departing employees and will provide them assistance where needed.
Earlier this year, Shopee had also let go of its regional workers in its ShopeeFood and ShopeePay teams. Most recently in early September, Shopee also trimmed staff in its gaming arm Garena and research and development unit Sea Labs.
Separately, Shopee also made headlines recently for withdrawing multiple job offers based in Singapore. The e-commerce firm reasoned that due to adjustments in hiring plans, a number of roles at Shopee are no longer available.
Shopee seeks to achieve profitability
Last week, Sea co-founder Forrest Li made headlines after announcing in an internal memo that its top management will forego their salaries. He said that the leadership team will not take any cash compensation “until the company reaches self-sufficiency”.
In addition, the company will also tighten its expenses as seeks to cut costs. In particular, the company will limit spending on business travel, including flights, meals and hotel stays; as well as cull reimbursement for meals and entertainment bills.
He noted that Sea has been struggling in an era of rising interest rates, accelerating inflation, and a volatile market. He sees this as not a “passing storm”, adding that these will likely persist into the medium term.
The company’s primary objective for the next 12 to 18 months is to achieve positive cashflow as soon as possible.
Featured Image Credit: Reuters
