Singaporean multinational technology company Shopee has recently become the talk of the town after the company’s decision to go through another round of layoffs after 3 months.
Facing a turbulent period
The e-commerce giant attributed the decision to efficiency issues and adjustments to changes in business policies, according to Indonesian media Kumparan.
According to the internal memo sighted by Insider, the e-commerce giant is facing a ‘turbulent period’ and is on a mission to drive self-sufficiency across their business.
The only way for us to free ourselves from relying on external capital is to become self-sufficient, generating enough cash for all our own needs and projects.
If we manage to do this, it will have huge implications for our future. We will have peace of mind, becoming less affected by the external ups and downs that are hurting us today, SEA founder Forrest Li said.
Besides layoffs, the company also implemented cost-cutting measures, including restricting employee expenses, capping all flights at the economy level, and executives forgo cash compensation.
It is understood the layoffs currently affect employees from Indonesia, Malaysia, Singapore and China. However, the exact number remains unclear.
In China, news of the Shopee layoffs has also become one of the trending topics on Weibo, with over 7.3 million reads at press time.
Chinese media BiaNews reported that the proportion of layoffs in some business lines s close to 60%.
Some Shopee employees also took to Chinese social media Xiao Hong Shu and shared their confirmed the case.
It is also reported that the layoffs affect staff in human resources, regional operations, marketing, and product and engineering.
Not the first time
Not long before this layoff, Shopee reportedly rescinded job offers a few days before the employee’s official joining date.
A Malaysian who requested anonymity told WeirdKaya that she started liaising with Shopee HR a few months ago and received an offer from the company to work in Singapore.
However, she was informed two weeks before she joined that the position she applied for was no longer available.
Shopee loses over 170 billion market value
Bloomberg also reported that Shopee’s parent company Sea Limited has lost around USD 170 billion of market value since an October 2021 high.
The company aims to achieve positive cash flow in the next 12 to 18 months.