1. Startups

Again, Nearly 500 Shopee Indonesia Employees Have Been Laid Off

Effort Sea Ltd. to improve the company's operational conditions for the sake of efficiency

A total of nearly 500 platform employees marketplace Shopee Indonesia has been laid off, most of them come from customer service. According to reports Bloomberg, the company is now more focused on boosting profitability rather than business growth.

Affected employees will receive severance pay according to applicable regulations, including one month's salary bonus, and access to health insurance for up to three months after the last working day. Employees celebrating Eid will also receive a Holiday Allowance (THR).

Previously, in September 2022, there were an estimated 180 employees Shopee Indonesia has been laid off. Those affected range from junior staff to positions head. This efficiency measure was taken in anticipation of global economic uncertainty.

In another report Bloomberg, Sea Ltd as the parent company of Shopee, was revealed to have cut 7.000 people or around 10% of the total employees of the company group in the last six months. Meanwhile, June 2022 will be the first wave of layoffs at Sea Group. At that time, employees from the division Shopping and food most affected by layoffs.

Sea's financial performance

A few days earlier, the internet giant with stock code NYSE: SE) also released financial performance reports ending December 31, 2022. Sea Group posted total revenue of $12,4 billion, up 25,1% compared to 2021.

Furthermore, adjusted EBITDA was recorded at minus $878,1 million, an increase from the previous $593,6 million. Meanwhile, the company also lost $1,7 billion, but improved by around 18,9% from the previous year.

If broken down by business category, E-commerce contributed revenue of $7,3 billion or grew 42,3% (YoY). Then, GMV was recorded to have increased 17,6% to $73,5 billion. Despite minus $1,7 billion, adjusted EBITDA improved 33,8% from minus $2,6 billion in 2021.

In category digital entertainment, revenue and adjusted EBITDA fell to $3,9 billion and $1,3 billion, respectively. Meanwhile, category financial services saw revenue growth of 160% to $1,2 billion throughout 2022. Adjusted EBITDA in this category improved from minus $616,9 million to $228,6 million.

In his statement, Sea Chairman and Group Chief Executive Officer Forrest Li said the company was starting 2023 on a stronger footing. According to him, the achievement of net profit in the fourth quarter of 2022 of $422,8 million from minus $616,3 million previously, shows a resilient business model with the company's execution capabilities.

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"Effort pivot Our focus on efficiency and profitability since the end of last year has driven increased profits. By continuing the transition and maintaining focus on sustainable growth, our approach is to do less, but do it better to serve users across our digital ecosystem.

By looking at macro uncertainties and maneuvers pivot Sea recently, it will continue to monitor market conditions while adjusting speed and improving company operations. "While there may be short-term fluctuations in financial performance, we remain confident in the long-term growth potential of the market and are fully focused on capturing those opportunities.”

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