Sea Ltd., Southeast Asia’s largest internet company is reportedly laying off about 500 employees at its e-commerce unit Shopee in Indonesia, according to a Bloomberg report.
In a related development GoTo Group, another of Southeast Asia’s largest internet companies, is embarking on fresh layoffs, cutting 600 as it undergoes a business structuring.
Both internet companies had previously laid off employees amid an industry crunch in 2022. Singapore-based Sea had cut more than 7,000 jobs in November 2022, while Jakarta-based GoTo reduced 12% of its workforce in the same month as layoffs rocked tech firms around the world in the year.
This development comes as the region’s once high-flying tech leaders retrench to focus on profitability over growth.
The companies which for years enjoyed rapid growth, are now putting profitability first as rising interest rates and elevated inflation make it harder to get consumers to spend more on online shopping and entertainment, food delivery and ride-hailing.