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Shopee reportedly cuts employees in China

Shopee reportedly cuts employees in China

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Shopee is reportedly slashing staff in China. According to SCMP, the eCommerce platform has laid off a number of employees in China on Monday.

While a Shopee spokesperson could not confirm the departments affected in the latest round of cuts to MARKETING-INTERACTIVE, she gave the standard response that these changes are part of Shopee's ongoing efforts to optimise operating efficiency with the goal of achieving self-sufficiency across our business. She also said the company is extending support to the affected colleagues during this transition. A similar statement was shared with the media when cuts were made in Singapore and Indonesia

However, the company didn’t clarify the number of the latest round of affected employees. Recently, Sea Group's top management reportedly relinquished their salaries and restricted company expense policies "until the company reaches self-sufficiency". On a group level, Sea is also limiting business travel to economy class travel fares and meals on business trips are also capped at US$30 a day. Spending on hotel stays for business trips has also been limited to US$150 per night and it is eliminating reimbursement for meals and entertainment.

Founder Forrest Li also explained that "this is not a quickly passing storm" and in fact, it expects these "negative conditions" to remain in the medium term. Sea's chief also touched on the struggle that the company is going up against as interest rates rise, markets turn volatile, and inflation accelerates. According to him, Sea does not expect to be able to raise funds as investors seek "safe haven investments". He added that Sea's main objective for the next 12 to 18 months is to "achieve positive cash flow as soon as possible".

Shopee also made headlines for pulling out of Argentina and reverted to a cross-border model in Chile, Colombia, and Mexico. SEA group also carried out job cuts at its gaming unit Garena.

Related articles:

Shopee to reportedly cut 3% of Indonesia workforce
Shopee's woes continue as it pulls out of Argentina

 

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