Shopee, the e-commerce arm of Southeast Asian internet giant Sea Ltd, is to lay off some employees from its ShopeeFood and ShopeePay teams in the region.
It will also lay off some of its teams in Mexico, Argentina and Chile, as well as a cross-border team supporting the market in Spain, according to an internal memo seen by The time of the straits tuesday.
Shopee chief executive Chris Feng said he was “making some adjustments to optimize our operations in certain segments and markets” in the memo sent Monday, local media reported.
“(Given) the elevated uncertainty in the broader economy, we believe it is prudent to make some difficult but important adjustments to improve our operational efficiency and focus our resources,” he reportedly said.
The platform will also complete its early pilot project in Spain. This comes after Shopee left the French market in March. The e-commerce unit also left the Indian market in the same month.
“Our business will continue to operate as usual in Shopee Mexico, Argentina, Chile, as well as ShopeeFood and ShopeePay in Southeast Asia. We are committed to providing the same level of support to our users, partners and merchants in all of these markets,” Feng said.
The memo did not specify which Southeast Asian countries would be affected by the layoffs, according to the report. Shopee has 24 offices on multiple continents. In 2015, Shopee launched in seven markets, including Singapore, Indonesia, Malaysia, Thailand, Taiwan, Vietnam and the Philippines, according to its website.
Last month, Shopee’s parent company, Sea, reported that its total first-quarter revenue rose 64.4% to $2.9 billion. The net loss, however, widened to $580.1 million from $422.1 million. Excluding items, the company reported a loss per share of $1.04, Reuters reported last month.
Shopee will join several tech companies and crypto firms in laying off staff as companies expect a bleak outlook.
Crypto.com, headquartered in Singapore, has announced the layoff of around 260 employees, or 5% of its workforce, its CEO Kris Marszalek tweeted last Saturday. He said the company was making “difficult and necessary decisions” to “ensure continued and sustainable long-term growth.”
Another cryptocurrency trading and lending platform BlockFi has also announced its downsizing. “We are reducing our workforce by approximately 20% and this reduction is impacting all teams across the business,” the company said in a post on its website Monday.
US power maker Tesla also fired its country manager in Singapore, after its founder and CEO Elon Musk reportedly warned of job cuts earlier this month. In an email to executives seen by Reuters, Musk said he had a “super bad feeling” about the economy and wanted to cut about 10% of jobs at the company.
Elsewhere in Malaysia, home services platform Kaodim announced earlier this month that it would cease operations from July 1, citing prolonged COVID lockdowns among the challenges it faced.
Tesla fires Singapore country manager after Elon Musk warns of 10% job cut