Shopee cuts hundreds of developer jobs worldwide, some employees in S'pore affected

E-commerce platform Shopee began cutting hundreds of developer jobs globally this week amidst its push towards AI.

The cuts will affect about 8 per cent of its developer workforce, Bloomberg reported, citing sources familiar with the matter.

More cuts might follow, Bloomberg wrote.

Adjustments made based on operational and business priorities: Shopee

In response to Mothership's queries, a Shopee spokesperson said that the company regularly assesses its staffing needs.

"From time to time, departments may make adjustments based on operational and business priorities," the spokesperson said.

"These decisions are always made after careful consideration. For colleagues affected by any changes, Shopee is committed to providing support during this period of transition," the spokesperson continued.

Shopee's spokesperson did not provide the specific number of employees affected by this round of job reductions.

At least 10 affected in Singapore: CNA

CNA reported that two software engineers at Shopee's Singapore headquarters learned they had been laid off on Monday (Jun. 8).

One of the engineers received the news via the company's instant messaging platform prior to an in-person meeting with the human resources department.

The engineer told CNA that affected employees were told they will receive an "N+2" severance package, or one month of salary for each year of service plus another two months of pay.

Another employee told CNA that they knew of at least 10 affected colleagues, mostly in the product and engineering teams, in Shopee's Singapore office.

This employee added that there was no town hall or company-wide email informing all staff of the layoffs.

Shopee provided advance notification: Union

A spokesperson for the Creative Media and Publishing Union (CMPU) said Sea Limited, Shopee's parent company, had informed the union in advance about the "workforce adjustment affecting certain employees".

Sea Limited is not a unionised company in Singapore, according to CNA.

The advance notification enabled CMPU to "work closely with management to better support affected employees through this challenging period".

"The union is working with the management to ensure that affected members and workers are offered fair compensation packages, and that the adjustment is conducted fairly and responsibly," the spokesperson said.

CMPU's representatives were also on-site during the layoff exercise to provide support and assistance to affected union members and employees, the spokesperson shared.

Bloomberg wrote that it is unclear if this latest round of layoffs at Shopee is tied to Sea's venture into artificial intelligence.

However, Sea's Chief Executive Officer, Forrest Li, previously noted that AI advancements could set Sea on a path to a US$1 trillion market capitalisation.