Shopee has started job cuts affecting hundreds of developers worldwide, representing about 8 percent of its developer team, as parent company Sea reviews staffing needs during a wider AI push.
The reductions started earlier this week and include quality assurance positions, Bloomberg reported, citing people familiar with the matter.
The report also indicated that Shopee may not be done reducing headcount.
Sea, which operates Shopee, Garena and Monee, has been putting more resources behind AI as it searches for new growth engines.
Chief executive Forrest Li has positioned AI as a key part of Sea’s long-term growth ambitions.
Within Shopee, AI is already used to personalise shopping results and support merchant-facing tools.
In February, Sea partnered with Google to develop AI tools across its businesses, including AI-powered shopping features for Shopee.
Union Support Begins for Affected Workers
A Sea spokesperson said the company adjusts headcount from time to time based on business needs and would provide assistance to employees affected by the changes.
Singapore’s Creative Media and Publishing Union received advance notice of the planned job reductions.
The union also deployed representatives to Shopee’s Geneo office on 8 June and Sea’s One North headquarters the following day to help affected employees.
The Taskforce for Responsible Retrenchment and Employment Facilitation acknowledged Sea’s early engagement with the union and its cooperation with CMPU on support for affected staff.
The affected employees are expected to leave the company in phases from late June to late August.
The company has also committed to retrenchment payouts that follow Singapore’s Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.
Featured image: Edited by Fintech News Singapore, based on image by Sea
