E-commerce giant Shopee is cutting jobs in China as part of its ongoing efforts to “optimize operating efficiency with the goal of achieving self-sufficiency” across their business. It also announced that around 3% of their workforce in Indonesia would be let go.
This move comes as Sea Ltd, Shopee’s parent company, is struggling to reassure investors after its share value plummeted in the past year.
A large part of this is due to Tencent, one of Sea’s major shareholders, selling off its stake in the company after Sea’s Free Fire game was banned in India due to data security concerns.
Shopee cuts jobs all over the world
The company has also been hit hard by the pandemic, with many businesses moving online and customers becoming more cautious with their spending. Those steep losses have forced Shopee’s parent company Sea Ltd to cut back on its global workforce.
Now, Shopee says it is laying off staff in China, Indonesia, Latin America, and other countries. Sources say that the layoffs are in single-digit percentages in each place. In a post on Maimai, a Chinese business networking platform, one user wrote that one business unit had laid off more than two-thirds of its employees.
“We are extending support to our affected colleagues during this transition,” a Shopee statement said on Monday.
Sea management feels the pain
Last month, the company also made headlines when a worker said his job offer was pulled at the last second after he had already arrived in Singapore from China. Many job offers have been rescinded since then.
“I landed with my wife and dog and was told my offer was cancelled while I was still at the airport,” the man said on WeChat.
CEO and co-founder Forrest Li said in another memo to employees that the company’s management is forgoing salaries and expenses until it becomes self-sufficient. The primary goal is to achieve positive cash flow in the next 12 to 18 months.