Sea’s e-commerce platform Shopee is cutting hundreds of developer positions worldwide, joining a growing number of technology companies reducing headcount while adopting artificial intelligence in the workplace and developing AI-driven services.
The workforce reduction began this week and affects about 8 per cent of Shopee’s developer workforce, according to people familiar with the matter. The cuts include roles such as quality assurance, with additional reductions potentially to follow.
Although it remains unclear whether the move is directly linked to Sea’s AI initiatives, the layoffs come as global discussions continue over the technology’s impact on employment and amid wider debate over claims of AI-driven restructuring following workforce reductions at companies including Block and Oracle.
Workforce restructuring amid changing industry trends
Many technology firms expanded hiring aggressively during the pandemic as online activity surged and businesses rushed to meet growing demand.
At the same time, concerns have emerged that AI could reduce reliance on traditional software tools and weaken demand for enterprise IT services.
While AI adoption has yet to produce consistently measurable productivity gains, many companies are exploring ways to improve efficiency and operate with leaner workforces.
Sea continues to expand AI ambitions
Sea, the Singapore-headquartered operator of Shopee and the Garena gaming platform, has been undergoing structural changes after chief executive Forrest Li said the company could potentially achieve a trillion-dollar market capitalisation by strengthening its focus on AI.
The company joins other major technology firms, including Alibaba Group, in increasing investments in AI while competition intensifies across their core businesses.
A Sea spokesperson said the company regularly reviews and adjusts its staffing requirements and that such decisions are made only after careful consideration.
The spokesperson added that support would be provided to employees affected during the transition period.
Union says support measures are in place
Singapore’s Creative Media and Publishing Union said it had been informed in advance of the company’s workforce adjustment affecting certain employees.
Union representatives visited Shopee’s office at Geneo on June 8 and Sea’s headquarters at One North on June 9 to provide assistance and support to affected members and employees.
The union said it is working with management to ensure affected workers receive fair compensation packages and that the process is carried out fairly and responsibly in accordance with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.
The Taskforce for Responsible Retrenchment and Employment Facilitation also noted that Sea had informed the union beforehand and is working closely with it to assist affected employees, whose last working day falls between the end of June and the end of August.
The taskforce added that Sea has committed to providing retrenchment benefits in line with the Tripartite Advisory guidelines.
Sea’s shares have declined since September, when the company was valued at about US$116 billion, with higher oil prices weighing on consumer sentiment and increasing operating costs, prompting investors to closely monitor its growth prospects.
The company has so far incorporated AI into areas such as product recommendations and seller tools.
In February, Sea announced a partnership with Google’s parent company, Alphabet, to integrate AI across its operations, including the development of AI shopping agents.
People familiar with the matter also said in May that Sea had established dedicated teams to identify new AI investment opportunities as it searches for its next engine of growth beyond e-commerce.
