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Shopee, One Of The Largest E-Commerce Companies, Is Shutting Down Operations And Laying Off Employees In Several Countries After Reporting Million-Dollar Losses.
The Shopee, one of the largest e-commerce companies based in Singapore, has laid off dozens of employees in recent weeks in a move that follows its parent company, Sea, citing increasing losses and significantly slower revenue growth. Four people interviewed by Reuters, who participated in a WeChat group of approximately 60 people, said their positions were suspended days before the expected start date in the role.
Important: “Shopee clarifies that it is a Singaporean company and that, contrary to what was published by Click Oil and Gas, the e-commerce platform that connects sellers, brands, and consumers is operating normally in Brazil.”
Shopee Lays Off Employees In Mexico
The Sea, based in Singapore, claims it has recently terminated some positions at Shopee, but did not provide numbers.
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According to a company spokesperson, due to adjustments in hiring plans for certain professionals in the technology sector, various roles at Shopee are no longer available.
The company is working closely to support the laid-off professionals. Earlier this year, some media reports claimed that Shopee had reduced its workforce in Southeast Asia, Latin America, and Mexico.
Sea Faces Almost Billion-Dollar Loss
In March, Sea stated that it would continue investing in the Shopee, which competes with Lazada, Alibaba’s platform in Southeast Asia, and that the expansion of the unit remained a priority.
However, in August, the company retracted its annual projection aimed at the e-commerce sector. Forrest Li, founder and CEO of Sea, stated that the market environment was becoming increasingly unstable and focused on the need to prioritize profits and efficiency.
Sea reported a net loss of $931 million in the second quarter of this year, more than double what was recorded in 2021.
Shopee’s Parent Company Loses Billion-Dollar Market Value
According to DZT Research’s Chief Analyst, Ke Yan, the company’s tone has never been as pessimistic, stating that Sea’s strategy of using cash flow from Garena, the group’s gaming sector, to offset Shopee’s cash burn was unsustainable.
“The company’s treatment of the layoffs was ugly and shameful and will likely harm its reputation”, highlighted Ke Yan.
The company saw its market value rise to over $200 billion in October last year, after Garena increased its popularity during the pandemic. However, shares have fallen since then, and now the company is valued at $27 billion.
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