Shopee is reportedly cutting employees from its Singapore office too. According to The Business Times, the teams impacted are marketing, regional operations, product and engineering and HR, and the announcement was made during a department-wide townhall.
While a Shopee spokesperson could not confirm the departments affected in the latest round of cuts to MARKETING-INTERACTIVE, she said, “These changes are part of our ongoing efforts to optimise operating efficiency with the goal of achieving self-sufficiency across our business. We are extending support to our affected colleagues during this transition.”
Meanwhile, she also shared a joint statement from the Union issued by Shopee and the Creative Media and Publishing Union which said that the Creative Media and Publishing Union (CMPU) and NTUC’s e2i (Employment and Employability Institute), are in touch with Shopee about their latest adjustments.
"Shopee has assured CMPU that appropriate compensation packages will be extended to affected employees in line with market norms. As part of the help rendered by the company, employment facilitation and assistance, including career coaching and job matching services via CMPU’s network and e2i will be offered, if required," the statement read. CMPU will also continue to work closely with Shopee to ensure that employees’ interests and welfare are taken care of as much as possible.
The news comes shortly after Shopee announced its plans to cut 3% of its Indonesia workforce. Moreover, just recently, Sea Group's top management reportedly relinquished their salaries and restricted company expense policies "until the company reaches self-sufficiency". 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.
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.
SEA Group’s chief Forrest Li 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.
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