Sea Group, the Singapore-born consumer internet giant, is suspending salary increases for staff and cutting down on bonuses this year, Bloomberg reported, citing an internal note sent by founder Forrest Li to employees.
Amid the Russia-Ukraine war and rising inflation, Li warned of a deteriorating economy in 2023. However, he also pointed out that the company would be beginning the year on “stable footing” as most of the restructuring was already in place.
Over the past few months, Sea has laid off over 10% or 7,000 of its total workforce.
The company posted an adjusted EBITDA loss of US$357.7 million for the third quarter of 2022, improving 29% compared to the previous quarter. It also lowered its guidance for the year, expecting 2022 bookings to be between US$2.6 billion and US$2.8 billion, against US$2.9 billion to US$3.1 billion earlier.
The tech titan – also the parent of ecommerce player Shopee and digital entertainment firm Garena – has been eyeing “self-sufficiency and profitability as soon as possible, without relying on any external funding.”
See also: Shopee rights the ship – for now
Editing by Eileen C. Ang
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