Sept – Gaming and e-commerce company Sea SE.N
is putting the brakes on its game livestream platform and
shutting projects at its development unit after reporting an
almost $1 billion quarterly loss, two sources familiar with the
matter told Reuters.
Employees were told staff numbers at its gaming livestream
business and its development arm would be cut, sources said.
Staff at Booyah!, a gaming livestream and community app,
which is part of Sea’s gaming unit Garena, were told they would
be let go and the app would no longer be updated, the sources
said. One source said it meant making 30 to 40 people redundant.
Sea Labs, the tech conglomerate’s development arm, was
shutting some of its biggest experimental projects and cutting
staff, including blockchain and public cloud projects, the
source said.
A third person with knowledge of the matter confirmed Sea
had shut some major projects and let go “dozens of people”,
saying it was related to Sea’s plan to boost profitability.
A spokesperson for Sea told Reuters the company had “made
some changes to improve efficiency in our operations that impact
a number of roles”, saying it would focus on the “long-term
strength of our ecosystem”.
The spokesperson declined to say how many jobs were
affected.
After a rally in its fortunes during the pandemic, Sea has
suffered setbacks that have led to more than a 72% drop in its
share price so far this year. In March, Sea warned that Garena
was taking a hit from government bans in India.
In June, Sea cut jobs across its e-commerce division Shopee,
according to media reports, not just in Southeast Asia but also
at its Mexico and Latin American operations.
The New York-listed tech firm last month posted a
wider-than-expected loss for the second-quarter and withdrew its
e-commerce forecast for the year, sending its shares plunging
14%.
Quarterly paying users for Garena dropped 39% in the
quarter.
Source: ASEAN Exchanges