Shopee Parent Sea Limited Cuts 15% of Workforce: Southeast Asia's E-commerce Winter Isn't Over Yet

Sea Limited is laying off employees again — this time, 15% of its workforce.

Background

Sea operates three main businesses: - Shopee (E-commerce): The largest in Southeast Asia - Garena (Gaming): Free Fire remains the primary revenue driver - SeaMoney (Fintech): Growing fast but still relatively small in scale

In 2022, Sea laid off 7,000 employees, marking its first major round of cuts. Now another wave has come, signaling that the pressure hasn't eased.

Why the Layoffs

1. Impact of TikTok Shop: In Indonesia, TikTok Shop's acquisition of Tokopedia has dealt a significant blow to Shopee
2. Temu's Entry into Southeast Asia: Another low-cost e-commerce disruptor has entered the arena
3. Profitability: Garena relies on Free Fire as its only major IP, and no new games have gained traction
4. Stock Price: Down from $370 in 2021 to around $60 now

Impact on Southeast Asian E-commerce

Despite the layoffs, Shopee still holds the top market share (approximately 45%). However, competition is intensifying, and profit margins are being severely squeezed.

The e-commerce industry is brutally competitive — first it was domestic players like Taobao/JD.com/Pinduoduo battling it out, then Amazon/Walmart, and now Shopee/Lazada/TikTok Shop/Temu. No corner of the global e-commerce market is at peace.

References:

• Bloomberg / Tech in Asia