Sea's Abrupt Pause On Job Offers Land Candidates In A Tight Situation

Sea's Abrupt Pause On Job Offers Land Candidates In A Tight Situation
  • Sea Limited SE owned e-commerce firm Shopee has dumped dozens of job offers in the past two weeks, Reuters reports.
  • Shopee withdrew offers of at least four candidates just days before their joining. The candidates included a professional who had quit his TikTok parent ByteDance Ltd job.
  • An analyst saw Sea's handling of the layoffs as "ugly and embarrassing" and likely to hurt its reputation.
  • Shopee offered a month's salary in cases where people have flown from abroad, including reimbursement of the cost of flight tickets and temporary accommodation.
  • The candidates landed in a soup as the cost of legal action was expensive, and so was the cost of returning to China and finding a new job, given the economic situation there.
  • In August, Sea reported widening losses and sharply slower revenue growth in Q2.
  • Sea acknowledged having canceled some offers at Shopee.
  • Earlier in September, Sea slashed the workforce in its money-making gaming arm, marking its second attempt in 2022 to contain costs as it struggled for growth.
  • Sea scaled back its overseas footprint and periphery businesses to focus on boosting profitability.
  • Sea explored cutting headcount in its most profitable division Garena and new ventures at its R&D arm. 
  • Sea aimed to cut 40 jobs from its game livestream app Booyah!, including product management and quality assurance teams.
  • Sea also aborted several experimental ventures at its R&D unit Sea Labs. 
  • Sea expected Garena to post its first booking decline this year and withdrew its 2022 e-commerce forecast. In June, Shopee downsized staff across multiple markets to rationalize its e-commerce business encompassing several Southeast Asian markets. 
  • Shopee's payments arm ShopeePay and food delivery business ShopeeFood also faced cuts. 
  • Price Action: SE shares traded lower by 1.90% at $58.79 in the premarket on the last check Tuesday.

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