Imagine setting sail to conquer Southeast Asia’s e-commerce market, only to witness Shopee—the region’s once-unshakable giant—suddenly rocked by layoffs, rumors of “suicide prevention measures,” and a storm of uncertainty. For sellers, the question looms: Is this the end of Shopee’s dominance, or merely a rough patch? Here’s what you need to know.
1. The Earthquake: Is Shopee’s Southeast Asian Empire Crumbling?
On September 18, the cross-border e-commerce world was jolted by news of Shopee’s abrupt workforce reductions. By the next morning, employee group chats were silenced, and a seven-minute “lightning meeting” announced the layoffs—with no specifics on affected departments, only vague promises of “one-on-one discussions.”
Insiders revealed the cuts were framed as “optimizations,” but the scale was staggering: 30% to 60% of staff in most teams, with unprofitable units slashed by up to 90%. Even more alarming were reports that Shopee had preemptively briefed security teams on “preventing potential suicide attempts” post-layoffs. While the company offered “N+2” severance, employees were reportedly forced to surrender devices and leave immediately—no notice, no transition.
The message was clear: The global tech winter had reached Southeast Asia. But Shopee’s troubles didn’t start here.
2. From Global Ambition to Survival Mode
Earlier this year, Shopee began aggressively cutting costs: raising fees in Southeast Asia, shuttering operations in France, India, and Spain, and retreating from Latin America—including exits from Chile, Colombia, Mexico, and Argentina. Officially, the company cited “macroeconomic uncertainty” and a need to focus on “core markets.” Unofficially, it was an admission: its global expansion had failed.
Founded in 2015, Shopee rose rapidly by outspending rivals like Lazada (owned by Alibaba) and local players such as Tokopedia. By 2021, it was in hyper-growth mode, launching in markets from Mexico to France. Parent company Sea raised $6 billion to fuel the spree—but when its gaming cash cow slowed and competition intensified, the cracks began to show.
3. Rescinded Offers: A Trail of Broken Promises
In late August, Shopee infuriated prospective hires by abruptly canceling job offers—many for engineering roles in Singapore. Some had already resigned from jobs, relocated families, or even landed in Singapore only to be told, “Sorry, the position no longer exists.” Compensation (one month’s pay + travel reimbursements) did little to soothe the outrage.
One case stood out: A 28-year-old Chinese Ph.D. graduate arrived in Singapore with his family on August 23, only to receive a call at the airport rescinding his offer. Shopee’s response? Silence. No support, no apologies—just a bureaucratic shrug.
4. The Stock Market’s Verdict
Once a darling of investors, Shopee’s parent company Sea has seen its stock plunge over 80% from its 2021 peak, erasing $100+ billion in market value. Second-quarter earnings revealed deepening losses ($648 million in adjusted EBITDA), further eroding confidence. CEO Forrest Li’s internal memo warned employees: “This isn’t a passing storm.”
5. The Core Problem: Growth at Any Cost
Shopee’s strategy was simple: Buy market share. By 2022, it led Southeast Asia in app engagement and even challenged Mercado Libre in Brazil. But the price was staggering losses—$20.4 billion in 2021 alone. Now, with funding drying up, Sea’s leadership has vowed to forgo salaries until the company turns cash-flow positive. The timeline? Twelve to eighteen months.
6. A Survival Guide for Sellers
For merchants, Shopee’s turmoil isn’t necessarily a death knell—it’s a call to adapt. Key strategies:
1. Ditch the “spray and pray” approach. The era of easy growth is over. Focus on data-driven operations, platform rules, and customer needs.
2. Align with Shopee’s priorities. If the platform pivots to live commerce or cost efficiency, follow suit.
3. Go local—really local. Understand cultural nuances, optimize logistics, and consider regional warehouses to slash delivery times.
The bottom line? Shopee’s struggles may reshape Southeast Asia’s e-commerce landscape, but agile sellers can still thrive—whether on Shopee or beyond.