Shopee is cutting dozens of jobs days before employees start
We recently highlighted Shopee’s leading position in app installs in Brazil in the second half of the year, with more than 9 million unique installs. In addition, we show you some “secrets” to the success of the largest e-commerce in Southeast Asia – revealed Debora Urbach, head of Latam sales at SHAREit, which provides services for the company. However, according to Reuters, Shopee appears to have canceled dozens of job offers in the past two weeks.
The move comes after its parent company, Sea, reported widening losses and significantly slower revenue growth, according to sources the agency heard. The report came from four people interviewed by Reuters who participated in a WeChat group of about 60 people. The group, in this case, was created to discuss closing vacancies for Shopee. Among the reports, people said their positions were suspended just days before they were due to start the role.
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Singapore-based Sea said it recently cut some Shopee jobs, but did not say how many. “Due to adjustments to the hiring plans of some technical teams, many roles at Shopee are no longer available. We are working closely to support those affected,” said a company spokesperson.
Earlier this year, some media reported that Shopee had reduced the number of employees in Southeast Asia, Mexico and Latin America. The company did not comment on these matters.
In March, Sea said it would continue to invest in Shopee, which competes with Alibaba’s Lazada in Southeast Asia. In addition, he confirmed that the growth of the unit remains a priority.
However, last month Sea withdrew its annual forecast for the e-commerce segment. Sea founder and CEO Forrest Li said the market environment is increasingly uncertain and stressed the need to prioritize profitability and efficiency.
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Sea posted a net loss of $931 million in the second quarter, more than double the loss recorded in the same period a year earlier. “Their tone has never been more pessimistic,” said Ke Yan, chief analyst at Singapore-based DZT Research. He also added that Sea’s strategy of using cash flow from Garena, the group’s gaming segment, to offset Shopee’s cash burn was unsustainable. “Sea’s handling of the firings was ‘ugly and embarrassing’ and will likely damage his reputation,” he said.
Singapore’s Ministry of Labor is hot on the heels of Shopee
The company’s market capitalization rose to more than $200 billion last October after Garena grew in popularity during the pandemic. However, the stock has since fallen and the company is now worth $27 billion.
Singapore’s Ministry of Labor said authorities are aware of the complaints regarding Shopee and are in contact with the company for further information. Fasikla also said that in such situations the parties should find an amicable solution.
In addition to the dismissal, the interviewees said that Shopee offered a monthly salary as compensation, and in cases where people came from abroad, they will reimburse the cost of the plane ticket and temporary accommodation.
Although potential lawsuits have been discussed on WeChat, the affected people are more concerned about finding a new job. “The cost of legal proceedings is very high. I just want to move on and find a new job,” said one of the four people interviewed by Reuters, who spoke on condition of anonymity.
Source: Istoé Dinheiro
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