Three months after the previous wave of job losses, Shopee is announcing more layoffs

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Last Updated on September 19, 2022 by Bitfinsider

The largest online retailer Shopee terminated additional positions on Monday, September 19, the latest in a string of actions in response to growing losses and weaker sales growth.

Internal town hall meetings with staff were held this morning to announce the layoffs.

Shopee said in a joint statement with the union that it is also in contact with the Creative Media and Publishing Union (CMPU), which is the union that represents Shopee’s employees, on its most recent “adjustments”.

The largest e-commerce company in Southeast Asia canceled dozens of employment offers earlier this month. When asked how many offers had recently been canceled at Shopee, parent firm Sea stated that they had done so “due to revisions to hiring plans” on specific tech teams. However, they would not specify how many offers had been canceled.

Shopee let off several staff members in June from its Southeast Asian food delivery ShopeeFood and online payment ShopeePay divisions, as well as from its workforce in Mexico, Argentina, and Chile.

CEO Forrest Li noted that Sea has just made “several unpleasant announcements” in a message to staff members last week, citing a difficult time for the IT sector.

According to Li in his letter, becoming self-sufficient—which entails establishing “positive cashflow” as soon as possible—is the “number one priority” for the upcoming 12 to 18 months.

More than doubling its loss from a year ago, Sea posted a net loss of US$931 million for the second quarter.

According to Chan Ih Ming, executive director of Digital Industry Singapore, enterprises must choose “how best to position themselves for the future” in light of the economic slowdown, which may entail changing the size and demographics of their workforces.

In Singapore’s economy, IT jobs are still in great demand, growing by roughly 10,000 each year last year, notably for machine learning engineers and backend developers, according to him.

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