Shopee cuts more jobs in Indonesia

March 10, 2023 11:29 pm

Shopee, the e-commerce arm of Singapore-based tech giant Sea Limited, has laid off about 500 workers in Indonesia, mostly from the operations team, said Elon Murz, who runs Indonesia's largest community of tech workers on Instagram.

According to Murz, the announcement was made on March 8 via a four-minute town hall, and the number of layoffs could go up to 2,000.

A spokesperson for Shopee said the decision is aimed at improving Shopee Indonesia’s operational efficiency.

The latest round of layoffs in Indonesia comes a day after Sea announced its fourth-quarter financials. On Tuesday, the Nasdaq-listed company reported fourth-quarter financial results, with net income turning positive at $422.8 million, compared with a negative $616.3 million in the fourth-quarter of 2021.

The improvement in net income should be attributed to a series of cost control efforts by the company starting in early 2022, including exiting non-core businesses and markets, laying off employees, etc.

The company also reduced its sales and marketing expenses. In the fourth quarter, sales and marketing for Shopee, its largest source of revenue, fell more than 50% year-over-year.

"We are starting 2023 on a much stronger footing," Chief Executive Forrest Li said in a news release. "Our decisive pivot to focus on efficiency and profitability since late last year is already driving meaningful bottom-line improvements."