SINGAPORE: E-commerce giant Shopee has cut jobs in Singapore amid its latest foray into artificial intelligence, stating that the move comes after a regular review of business operations.

Responding to media queries on Wednesday (Jun 10), a Shopee spokesperson said the company regularly assesses its “staffing needs”.

“From time to time, departments may make adjustments based on operational and business priorities,” said the spokesperson.

“These decisions are always made after careful consideration. For colleagues affected by any changes, Shopee is committed to providing support during this period of transition.”

It is not clear how many employees in Singapore have been affected.

Bloomberg reported on Wednesday that Shopee was cutting hundreds of developer roles globally, amounting to about 8 per cent of its developer workforce.

Shopee, which dominates Southeast Asia’s e-commerce market, is headquartered in Singapore and has offices in more than 20 cities around the world.

The company had cut jobs in 2022 amid falling profitability and the COVID-19 pandemic.

The latest round of job cuts in the Singapore headquarters was confirmed to CNA by two software engineers who spoke on condition of anonymity.

Both employees learnt that they had been laid off on Monday.

One of the software engineers was informed on the company’s instant messaging platform first, before an in-person meeting with the human resources department.

Affected employees were told they would receive an “N+2” severance package, or one month of salary for each year of service plus another two months of pay, this engineer said.

The two engineers were unaware of how many staff members were affected in the latest round of cuts.

A third employee whose role was unaffected by the news told CNA that there was no townhall meeting or company-wide email communicating the news to all employees.

This employee knew of at least 10 affected colleagues in Shopee’s Singapore office, and said that they were mostly in the product and engineering teams.

Shopee's parent company Sea is not unionised in Singapore.

However, the company informed the Creative Media and Publishing Union (CMPU) in advance about a “workforce adjustment affecting certain employees”, a union spokesperson said in response to queries.

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

The spokesperson also said CMPU representatives were on site during the layoff exercise to provide assistance.

The Taskforce for Responsible Retrenchment and Employment Facilitation said Sea was working closely with CMPU to support affected employees whose last working day falls between end-June and end-August.

"Sea Ltd has also committed to providing a retrenchment package in line with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment guidelines," it said in response to queries.

The taskforce was set up in 2016 and comprises the Ministry of Manpower, Workforce Singapore, the National Trades Union Congress and its Employment and Employability Institute.

PIVOT TOWARDS AI

Shopee’s parent company is Sea, the global technology company listed in New York.

The company also owns games developer Garena and digital financial services business Monee.

In 2025, Sea’s CEO Forrest Li reportedly spoke about the company’s structural push towards artificial intelligence, stating in a memo to employees that a trillion-dollar market capitalisation is possible if it doubles down on AI and can “make the right calls”.

Bloomberg reported last month that the company had committed capital towards internal and external AI projects, as part of moves to find growth outside of e-commerce.

In April, Sea established an Artificial Intelligence Centre of Excellence in Singapore with support from Digital Industry Singapore (DISG) – a joint office by the Economic Development Board, Enterprise Singapore and Infocomm Media Development Authority.

“As AI continues to evolve, we see it as a foundational capability that strengthens how we build innovative products, operate at a global scale, and create value for the countless communities we serve,” said Mr Li during the centre’s launch.

The AI push comes as the firm reported higher profits while also spending significantly more in the latest quarter.

Sea’s operating expenses surged 43.4 per cent year-on-year to almost US$2.6 billion (S$3.3 billion) in the first quarter of 2026, with the cost of revenue also increasing by 51.7 per cent to US$4 billion.

The company nonetheless posted higher earnings, with net income increasing 6.7 per cent year-on-year to reach US$438.2 million.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) went up by 9.3 per cent to reach US$1 billion.