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Singapore's Sea Cuts 7,000 Jobs in Six Months to Curb Losses

Sea Ltd. has reduced its workforce by around 7,000 employees, or approximately 10%, over the past six months in an effort to cut losses and regain investor confidence, according to a source familiar with the situation.

November 15, 2022
4 minutes
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Sea Ltd. has reduced its workforce by around 7,000 employees, or approximately 10%, over the past six months in an effort to cut losses and regain investor confidence, according to a source familiar with the situation.

According to sources familiar with the matter, Sea's e-commerce arm Shopee has laid off around 100 employees. Those affected started receiving notices on Monday. This is the latest in a series of layoffs that began in June.

Since reaching a peak last year, gaming and online-retail giant has lost almost 90% of its value amid concerns about its profitability in an era of rising interest rates and intensifying competition. The company has responded by cutting jobs, shutting down its e-commerce operations in some European and Latin American markets, and reducing expenses.

Sea is set to release its quarterly results on Tuesday, and analysts are expecting to see wider losses and the slowest year-on-year revenue growth since 2017.

Sea has made cuts to its recruitment, employee relationship management, training and other human resources functions in Singapore and China, according to people familiar with the matter. The Information earlier reported on the extent of the company's recent layoffs.

Shopee and its digital financial services arm SeaMoney have been affected by the coronavirus outbreak, with staff supporting hiring and training across the company being impacted. Managers have been told to recruit more prudently as the company braces for an economic downturn.

"We are continuing to carefully review our business projects and priorities in line with our goal of achieving self-sufficiency," Sea said in a statement. "We are also working to support our affected colleagues during this transition." The company ended 2021 with more than 67,000 people overall.

In September, billionaire co-founder Forrest Li announced that top management would forgo their salaries and tighten company expense policies in an attempt to curb spending. This move comes as the company looks to cut costs and become more efficient.

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