According to local media Kumparan, e-commerce giant Shopee is laying off 180 people, or 3% of the workforce, in Indonesia as well as in China and Singapore.
The Business Times said that Shopee employees in Singapore and China had also been informed about the layoffs. The business did not say how many employees were impacted, though.
Shopee Indonesia explained the choice in a statement by blaming inefficiencies and making modifications for new business regulations.
“Global economic conditions require us to adapt more quickly and evaluate business priorities in order to be more efficient. This is a very difficult decision,” said Radynal Nataprawira, head of public affairs at Shopee Indonesia.
Affected Indonesian personnel, including department heads, directors, senior managers, and entry-level or junior staff positions, were informed on Monday morning, according to Kumparan.
According to Nataprawira, employees who are let go will get severance pay, compensation, and an extra month’s salary in accordance with Indonesian law. Until the end of 2022, they can also utilize the benefits of health insurance.
Shopee appears to be putting efficiency as a priority lately. The corporation shut down operations in Argentina, Chile, Colombia, and Mexico earlier this month.
Additionally, according to a recent internal communication from CEO Forrest Li, the executive team of Shopee’s parent company Sea Group will not accept any financial payments until the company achieves self-sufficiency. For work trips, sea employees will only fly in economy class, and their daily hotel and dining expenditures will be capped at $30 and $150, respectively.
