Ecommerce giant Shopee is slashing jobs in Singapore and China as well as Indonesia, where 180 employees – 3% of the workforce, will be dismissed, according to local media Kumparan.
Shopee staff in Singapore and China have also been notified about the layoffs, The Business Times reported. However, the company did not specify how many employees were affected.
In a statement, Shopee Indonesia attributed the decision to efficiency issues and adjustments to changes in business policies.
Photo credit: Shopee
“Global economic conditions require us to adapt more quickly and evaluate business priorities in order to be more efficient. This is a very difficult decision,” said Radynal Nataprawira, head of public affairs at Shopee Indonesia.
Kumparan reported that affected employees in Indonesia – ranging from department heads or directors and senior managers to entry-level or junior staff positions – were notified on Monday morning.
Nataprawira said laid-off staff will receive severance pay and compensation according to Indonesian regulations, including an additional month of salary. They can also use health insurance facilities until the end of 2022.
See also: Tracking layoffs across Asia’s startup ecosystem
Shopee seems to be focusing on efficiency lately. Earlier this month, the company closed operations in Argentina, Chile, Colombia, and Mexico.
In addition, the leadership team of Shopee parent Sea Group will not take any cash compensation until it reaches self-sufficiency, CEO Forrest Li announced recently in an internal memo. Sea staff will also stick to economy class for business travel, and travel meal and hotel stay expenses will be limited to US$30 and US$150 per day, respectively.
In June, Shopee also cut jobs for its international operations. The move primarily affected ShopeeFood and ShopeePay workers in several markets.
Singapore-based Sea Group has lost nearly US$170 billion in market value since hitting a high in October. Its share trading dropped 2.6% before US markets opened, and its stock has seen a downgrade of 72% this year.
Editing by Miguel Cordon and Eileen C. Ang
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