Shopee cuts hundreds of developer jobs globally as parent company Sea pivots toward AI
E-commerce platform Shopee, owned by Singapore-based Sea Ltd, has laid off hundreds of software engineers and developers globally, representing approximately 8 percent of its developer workforce. The cuts come as Sea pivots toward artificial intelligence, with CEO Forrest Li having outlined ambitions for a trillion-dollar market capitalization contingent on doubling down on AI. The layoffs signal a broader industry trend of tech companies replacing traditional engineering roles with AI-driven capabilities.
Shopee confirmed the job cuts on Wednesday, describing them as the result of a regular review of staffing and business priorities, though the company did not disclose the total number of employees affected. Bloomberg reported the reductions amount to hundreds of developer roles globally, or roughly 8 percent of Shopee's developer workforce. In Singapore, where Shopee is headquartered, at least two software engineers confirmed they were notified of their layoffs on Monday — one via the company's internal messaging platform before an in-person HR meeting. Affected employees were offered an 'N+2' severance package, comprising one month's salary per year of service plus two additional months of pay. Sea's CEO Forrest Li has publicly championed an AI-first strategy, and in April the company launched an AI Centre of Excellence in Singapore with government support. Despite rising operating expenses — up 43.4 percent year-on-year to nearly US$2.6 billion in Q1 2026 — Sea posted net income of US$438.2 million, a 6.7 percent increase, suggesting the restructuring is aimed at sustaining profitability while funding the AI transition. Singapore's Creative Media and Publishing Union was notified in advance and had representatives on-site during the layoff process to support affected workers.
What's missing
It is not yet clear how the developer workforce reductions will be distributed across Shopee's more than 20 global offices beyond Singapore, nor whether additional rounds of cuts are planned as the AI transition progresses.
How coverage differed
Channel NewsAsia provided granular on-the-ground detail, including firsthand accounts from affected Singapore-based engineers and union involvement, framing the story with a local labor and social support angle. Bloomberg's headline foregrounded the strategic 'pivot to AI' framing, emphasizing the corporate and market dimensions of the cuts.
What different sources said
- Channel NewsAsiaCenter
Shopee slashes jobs in Singapore amid AI push; software engineers among those affected
- BloombergCenter
Sea’s Shopee Cuts Hundreds of Developer Jobs During Pivot to AI
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