Rumors Say Sea Ltd's Efficiency Measure to Hit Shopee Indonesia
Sep 18, 2022
By Editorial Team 19/09/2022
Southeast Asia's leading e-commerce platform, Shopee, is reportedly in big trouble. A D-Insights source said Shopee Indonesia would announce massive layoffs this week, similar to what the company did in several other countries. Shopee cited the weakening global macroeconomic condition as the reason behind the streamlining. At the beginning of the pandemic, as the online business boomed, Shopee expanded and recruited aggressively. However, poor economic projections until next year forced the company to take drastic measures. "We will not take any cash compensation until the company reaches self-sufficiency," Forrest Li, Chief Executive Officer (CEO) of Sea Ltd, said in an internal memo sent to staff on Thursday, as quoted by Bloomberg. The memo appeared after Sea Ltd ceased operations in some markets and trimmed staff across its divisions. "We can now see that this is not a quickly passing storm: these negative conditions will likely persist into the medium term." In Indonesia, Shopee Xpress couriers reportedly have been on strike for more than a week due to reduced incentives. On Twitter, many accounts pointed out that Shopee lowered Shopee Xpress' service fee to only Rp 2,000 per package. Shopee Xpress a written statement revealed that many Shopee Xpress courier partners wished to talk about the new figure. "We need to convey that the tariff adjustment is necessary to strengthen the service ecosystem," the company's spokesperson said to Kompas.com on Saturday. To ease the transition, the company is providing operational support funds totaling up to Rp 176,000 in September for courier partners, in addition to the current accident insurance. Start your free trial. If you would like to get a 30-day free unlimited access to all of our insights, please click “Start free trial” button below. If you already have an account, please login.