Shopee cuts jobs in Singapore amid push towards AI

E-commerce platform Shopee has cut jobs in Singapore as it shifts focus towards artificial intelligence (AI).

Parent group Sea Ltd is cutting hundreds of developer jobs at Shopee globally as it adopts AI in the workplace and develops new services based on the technology, according to Bloomberg.

It was reported that the cuts, which began this week, amount to about 8 per cent of Shopee's developer workforce, affecting roles such as quality assurance.

More redundancies are expected, reports said.

Responding to queries from AsiaOne on Wednesday (June 10), Shopee said the company regularly assesses its staffing needs and may make adjustments based on operational and business priorities, adding that the decisions are made after careful consideration.

"For colleagues affected by any changes, Shopee is committed to providing support during this period of transition," said the spokesperson, though the company did not disclose how many employees in Singapore were affected.

Union notified in advance

In response to queries, the Creative Media and Publishing Union (CMPU) said Shopee had informed the union in advance about a "workforce adjustment affecting certain employees", according to CNA. 

"Advance notification has enabled CMPU to work closely with management to better support affected employees through this challenging period," said the spokesperson, adding that this includes ensuring fair compensation packages are offered.

CMPU representatives were also reportedly present during the exercise to assist affected employees.

Shopee last carried out job cuts in 2022, when it rescinded dozens of job offers. The move came shortly after parent company Sea Ltd reported widening losses and sharply slower revenue growth.

Four people who were interviewed by Reuters then said the offer was withdrawn just days before they were due to start work.

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xingying.koh@asiaone.com