Shopee has begun laying off hundreds of software developers across its global operations, with employees in Singapore among those affected as the company continues to streamline operations and invest more heavily in artificial intelligence initiatives.
According to reports, around 8 per cent of Shopee’s global developer workforce has been impacted by the latest round of job reductions. While the exact number of employees affected has not been disclosed, sources indicated that the cuts took place this week across multiple markets.
Singapore Employees Among Those Affected
Several staff members at Shopee’s Singapore headquarters were reportedly informed of their layoffs on Jun. 8.
One software engineer said they first received notification through the company’s internal messaging platform before being called into a meeting with human resources. Affected employees were reportedly offered an “N+2” severance package, which includes one month of salary for every year of service, plus an additional two months of pay.
Another employee claimed that at least 10 colleagues in Singapore, mainly from product and engineering teams, had been affected. The employee also noted that there was no company-wide announcement or town hall meeting regarding the exercise.
Shopee Says Workforce Reviews Are Ongoing
In response to media queries, Shopee stated that it regularly reviews its staffing requirements and organisational structure.
A company spokesperson explained that departments may occasionally make adjustments based on operational needs and business priorities. The spokesperson added that such decisions are made only after careful consideration and that support would be provided to employees affected by the transition.
Shopee did not reveal how many workers were impacted globally or in Singapore.
Union Was Informed Before Layoffs
The Creative Media and Publishing Union (CMPU) confirmed that it had been informed beforehand by Shopee’s parent company, Sea Limited, about the workforce adjustment exercise.
According to the union, advance notice allowed representatives to work with management and provide assistance to affected employees during the process. CMPU representatives were reportedly present during the layoffs to offer support and ensure workers received fair treatment and compensation.
Although Sea Limited engaged with the union regarding the retrenchment exercise, the company itself is not a unionised employer in Singapore.
AI Push Raises Questions
The latest workforce reduction comes as Sea Limited accelerates its artificial intelligence ambitions.
While there has been no official confirmation that the layoffs are directly linked to AI adoption, observers have noted the timing coincides with the company’s growing focus on AI technologies. Sea founder and CEO Forrest Li previously said that advances in artificial intelligence could potentially help drive Sea Limited towards a US$1 trillion market valuation.
The retrenchments also reflect a broader trend across the technology sector, where companies are increasingly restructuring teams, automating processes and reallocating resources towards AI-related projects.
For software engineers and developers, the latest cuts may signal continued pressure on traditional coding and product-development roles as businesses worldwide seek greater efficiency through automation and AI-powered tools.