- Sea Limited SE ecommerce arm Shopping will leave Argentina and close local operations in Chile, Colombia and Mexico, while its gaming unit Garena will lay off hundreds of employees in Shanghai, Reuters reported citing an internal email.
- Shopee’s CEO said that “given the current heightened macroeconomic uncertainty,” Sea needs to “focus resources on its core business.”
- Sea reduced the workforce in its units after notification a nearly $1 billion quarterly loss in April-June.
- Garena’s most significant source of income is the mobile game Free Fire. Sea will depart Argentina entirely, maintaining cross-border operations in Chile, Colombia and Mexico. However, dozens of local employees will be laid off.
- Sea has reportedly laid off employees in Shanghai, a key development hub for Garena. It has laid off up to 15% of staff at its Shanghai office this week, with the number being “under several hundred”.
- Garena has also canceled several new games. In the meantime, Shopee dumped dozens of job offers in the last two weeks. It withdrew bids from at least four candidates just days before they joined.
- In early September, Sea reduced the workforce at Garena, marking its second attempt of 2022 to contain costs while it struggled to grow.
- Sea reduced its overseas presence and peripheral businesses to focus on increasing profitability. It considered staff reductions in its most profitable division, Garena, and new ventures in its R&D arm.
- In contrast to alibaba group holding ltd BABA-in possession Lazada group looking forward to a European foray after his success in Southeast Asia.
- Price promotion: SE shares traded 7.19% higher at $63.63 on the last check Friday.
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