Sea Limited, Shopee's parent company, is reportedly laying off some workers in Indonesia, as well as in China and Singapore as it faces challenges in the market.
According to the reports, the Singapore-based firm wants to win back the investors once again to mitigate its losses. The move will occur following the job cuts over the past weeks.
Shopee to Layoff Employees in Three Markets
According to Indonesian publication Kumparan, 3% of the workforce coming from three Asian markets will be axed soon.
Regarding the layoffs, Shopee has already notified the staff in the affected regions about the decision. Although it's already announced that it will be taking place soon, the e-commerce titan did not reveal the specific number of employees who will leave the company.
Sea Limited has been running two businesses at the same time. Aside from its popular shopping app across Southeast Asia, the corporation is also managing the mobile game "Free Fire" on the other end.
"These changes are part of our ongoing efforts to optimize operating efficiency with the goal of achieving self-sufficiency across our business," Shopee said in an email.
The memo suggests that the company will offer assistance and other packages needed by the staff.
Amid the volatile market conditions, Sea is only one of few companies facing the aftermath of the pandemic. Since October, it has already lost about $170 billion or $239 billion (Singaporean dollar).
The corporation is also on a tightrope in the competition against one of the biggest e-commerce leaders in the world: Alibaba Group Holding.
Related Article : Shopee Cancels Job Offer to a Chinese Man While at the Airport in Singapore with Wife and Dog
Shopee Withdraws in Europe and Latin America
The global economic crisis has been hitting companies and their investments. It's no wonder why mass layoffs happen around the world because it's one of the ways that could protect them from the meltdown.
According to Forrest Li, the chief executive of Sea, the top management bosses decided to ditch the compensation to adapt to the adjustments. Along with the changes in compensation, the company will also improve its policies.
The Strait Times reported that Shopee is gradually withdrawing its investments from other markets, particularly in Latin America and Europe.
Its connection with other countries is stained by geopolitical tension like in the case of India where Chinese firms have no reason to stay. The banning of Shopee in the country only doubles the struggle for the firm.
Indeed, this was a very difficult decision to make, as the management mentioned in the internal memo. Despite that, Sea will guarantee that it will give the support that the employees need in these trying times.
This article is owned by Tech Times
Written by Joseph Henry
