Shopee Philippines, which has boomed over the past years amid the pandemic, is set to lay off some of its employees to “optimize” business after it reported a loss of $931.2 million in the second quarter of 2022.
Prior to this, the Singapore-based tech giant has already started downsizing its staff in Singapore and China. The company has also closed its Indian office and laid off 300 workers due to regulatory interventions by the Indian government.
According to sources contacted by Inquirer.net, plans by Shopee’s headquarters would also translate to a reduction in Shopee Philippines’ workforce by a “low single-digit percentage” of employees like their overseas counterparts.
The report said that the move was a “prudent” and “sensible” measure after the company reported a loss of $931.2 million in the second quarter of 2022, widening significantly from a net loss of $433.7 million in the second quarter of 2021.
As per Shopee’s parent company Sea Limited's financial statements, the company’s revenue was valued at $2.9 billion, a year-on-year increase of 29.0%, amid its net loss.
However, Shopee’s operation in the Philippines will most likely be unaffected by the recent downsizing–which has already been confirmed by Shopee Philippines.
“These changes are part of our ongoing efforts to optimize operating efficiency with the goal of achieving self-sufficiency across our business. We are extending support to our affected colleagues during this transition,” Shopee said.
Affected employees in Shopee Singapore have already received compensation packages "in line with market norms" according to Shopee and Singapore's Creative Media and Publishing Union.
Meanwhile, laid-off employee benefits or details about the downsizing in Shopee Philippines are still unknown.
Pola Rubio is a news writer and photojournalist covering Philippine politics and events. She regularly follows worldwide and local happenings. She advocates for animal welfare and press freedom. Follow her twitter @polarubyo for regular news and cat postings. The views expressed are his own.
Watch more videos on Yahoo: