Focus Shifts to Self-Sufficiency as Losses Widen
Shopee, Southeast Asia’s largest e-commerce platform, announced additional job cuts on Monday (Sep 19), just three months after a previous wave of layoffs. The retrenchments were communicated to staff during town hall meetings held earlier in the day.
“These adjustments are part of our continued efforts to enhance operational efficiency and achieve self-sufficiency across our business,” stated a Shopee spokesperson. Support measures are being provided to affected employees during this transition, the company added.
Collaboration with CMPU for Support and Compensation
Shopee is working closely with the Creative Media and Publishing Union (CMPU) to ensure appropriate support for those impacted. In a joint statement, Shopee and CMPU confirmed that affected staff will receive compensation packages aligned with market standards. Additionally, career coaching, job matching, and other employment facilitation services will be offered as needed through CMPU and e2i’s networks.
Previous Job Cuts and Cancellations
This latest round follows earlier layoffs in June, which impacted ShopeeFood, ShopeePay, and staff in regions like Mexico, Argentina, and Chile. Earlier this month, Shopee also rescinded numerous job offers, attributing the move to adjustments in hiring plans.
In a recent letter to employees, Sea Group CEO Forrest Li acknowledged the turbulence in the tech sector and emphasised the company’s immediate focus on achieving positive cash flow within 12 to 18 months.
Financial Struggles and Industry Context
Sea Group reported a net loss of US$931 million for the second quarter, more than doubling its loss from the same period last year. The financial strain has prompted the company to prioritise self-sufficiency and cost efficiency across its operations.
Commenting on the situation, Chan Ih Ming, executive director of Digital Industry Singapore, noted the challenges faced by tech companies amid the economic slowdown. He highlighted that while tech jobs remain in high demand—growing by about 10,000 positions annually in Singapore—escalating wages and fierce competition for talent have added pressure on companies.
Despite the current challenges, Singapore’s tech sector remains a growth driver, with ongoing investments by global and local tech firms underscoring its long-term potential.
