Shopee joins start-up layoffs trend in RI, blames global economy – Tech

Wike D. Herlinda (The Jakarta Post)

Jakarta ●
Mon, September 19, 2022

3:50 p.m

Shopee, SEA, SEA Group, Ecommerce

Shopee Indonesia has announced layoffs in Indonesia, following a broader trend that has unsettled workers in the country’s tech sector in recent months.

The subsidiary of Sea Ltd. from Singapore said on Monday it had laid off “several” employees in Indonesia.

In the meantime, Bloomberg reported that Shopee was preparing to lay off 3 percent of its employees in the country as part of “a broader wave of regional job cuts aimed at stemming mounting losses and winning back investors.”

Shopee has also pulled out of key markets in Europe and Latin America and has been banned in India amid rising tensions with Chinese firms.

Also Read :  Insights on the Firewall-as-a-Service Global Market to 2027 - Adoption of Cloud-based Firewalls Among Small and Medium-sized Enterprises Presents Opportunities -

The company vowed that the latest decision would not affect its operations or services to sellers, buyers and partners in Indonesia.

Radnyal Nataprawria, head of public affairs at Shopee Indonesia, explained that the decision is the last option for the e-commerce company after making other adjustments to its business policies.

“Global economic conditions require us to adapt faster and evaluate business priorities in order to be more efficient. This is a very difficult decision,” he was quoted as saying in a statement released Monday.

He emphasized that the efficiency measure is consistent with the company’s global focus on achieving independence and sustainability, which he believes are two important components of running a business amid the current global economic troubles.

Also Read :  US Inflation Data to Set the Tone for USD/CAD

Radnyal also emphasized that Shopee Indonesia will focus on sustainable business growth, adding that the company “wants to strengthen our operations and ensure that they are stable in the current economic situation.”

He said Shopee will remain committed to helping affected workers.

“This process is conducted based on government regulations. Affected employees will receive a severance payment in accordance with the statutory provisions with an additional monthly salary,” he explained.

As of this year, Shopee has served both buyers and sellers, including micro, small and medium-sized enterprises (MSMEs) and local entrepreneurs, in 514 cities and counties across the archipelago. The company said it remains committed to programs for MSMEs conducted at nine Shopee MSME campuses.

Also Read :  Pound UK economy latest: Kwarteng accused of gambling with UK economy by devolved nations

“Shopee’s achievements to date cannot be separated from the hard work and dedication of the Shopee team. Thank you for the contribution so far from the entire Shopee team,” Radnyal said, noting, “We will continue our mission of serving millions of people [users] to benefit from the advantages of the digital economy via our platform.”

Alongside a gaming arm, Shopee was one of Sea’s most important companies. The largest Southeast Asian tech giant ended 2021 with a total of around 67,000 employees.

The group has lost around $170 billion in market value since an October high as questions surrounding its earnings prospects amid rising interest rates in the region and growing competition from Alibaba Group Holding Ltd. remain.

Source link