Singapore-based ecommerce giant Shopee is set to implement “mass layoffs” across its international operations, multiple sources told Tech in Asia.
The job cuts will primarily affect ShopeeFood and ShopeePay workers in several markets, one of the sources said. Apart from its home market of Southeast Asia, the company is present in Taiwan, Brazil, Mexico, Chile, and Colombia.
The decision was announced to employees earlier today in an international town hall meeting, which was led by an executive from Sea Group, Shopee’s parent firm. The executive, however, did not elaborate on the reason for the move.
Shopee staff were told to expect an email “listing the names” of affected employees soon.
Tech in Asia has reached out to the company for confirmation.
The development comes only a couple of months after news broke of Shopee’s decision to shut down its operation in India, laying off over 300 workers in the country.
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During the peak of the COVID-19 pandemic, the world went through what many called ‘The Great Resignation’, following huge job-hopping movements by employees seeking better opportunities elsewhere.
Now that the pandemic has reached a level of relative calm, the tables are turning. Employers are beginning to conduct large-scale retrenchments as companies begin to realize the struggles of growth in the new normal.
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According to sources close to Singapore-based e-commerce giant Shopee, the company is planning to conduct what many are reporting to be ‘mass layoffs’ across its international operations, not long after closing up shop in India – which left 300 workers jobless.
The decision to undergo these mass layoffs was reportedly announced in an international townhall meeting on June 13, 2022, led by an executive at Sea Group – the parent company of Shopee – according to Tech in Asia.
As to why these layoffs will be taking place, the Sea Group exec reportedly did not elaborate. All we know for now is that affected employees will receive a notice of termination via email.
The news of these layoffs comes not too long after Shopee announced the closure of operations in India and France back in March 2022.
The e-commerce giant has also announced that Shopee Spain will cease operations this month, issuing a notice saying, “Shopee.es will stop operating from 11.59 p.m. on June 17, 2022. All orders received up to that date will be processed as usual and aftersales service and support will continue to be available to all users who have made purchases on our platform”.
Interestingly, Deal Street Asia reports that nearly 50 percent of Thailand’s ShopeePay and ShopeeFood employees have been affected by the layoffs, with workers being told to go home and check their emails.
Singapore-based ecommerce firm Shopee is making “adjustments” to its headcount that will impact its teams in Southeast Asia, and Latin America, as well as its business in Europe, according to an internal company announcement seen by Tech in Asia.
In an email sent to employees last night, Shopee CEO Chris Feng said that the changes will affect some roles in the ShopeeFood and ShopeePay teams in Southeast Asia, as well as the ecommerce firm’s operations in Mexico, Argentina, and Chile.
Despite the job cuts, Feng assured that the respective businesses will continue to operate as usual, and that it is “committed to providing the same level of support to our users, partners, and merchants.”
However, the company will halt its early-stage pilot in Spain, which will see “adjustments” in the cross-border team supporting operations in the European country.
The layoff, which was first reported by Tech in Asia yesterday, was carried out to “optimize operations in certain segments and markets”, the email reads. Feng says he the move will ensure that Shopee can “continue scaling sustainably, and ultimately, win”.
“This was a very difficult decision to make and I know that this will have a major impact on affected team members and their families. We will do the very best we can to support them through this transition,” Feng said in the email.
Tech in Asia has reached out to Shopee for confirmation.
The move was not the first cost-cutting measure carried out by Shopee this year. In early March, the company shut down its operations in France after setting foot in the country last year as part of its European push. Later that month, it pulled the plug on its India operation, parting ways with over 300 staff in the country.
