Sea Group is cutting top management salaries and revising the company’s cost guidance as it faces profit pressure.
The report cites an internal memo to employees sent by Chief Executive Officer Forrest Li that shows the company has to “tighten its belts” in order to deliver solid sales.
In the memo, Li said the leadership team will not receive any money until Garena’s parent company is able to break through.
This comes after Sea ended operations in four Latin American markets and cut staff in its divisions. The Singapore-based company has lost nearly $170 billion in market value since peaking in October 2021. Trading in its shares was down 2.6% before the US markets opened, and the stock is down 72% this year.
Mr. Li added that Sea does not anticipate another round of fundraising as investors become wary of an economic downturn. For business trips, Sea employees will travel in economy class. The company is also limiting travel and hotel expenses to US$30 and US$150 per day, respectively.
Sea’s mission is to improve the lives of consumers and small businesses in our region with technology. Sea operates three core businesses in digital entertainment, e-commerce, as well as digital payments and financial services such as Garena, Shopee and SeaMoney.
“I find that whenever I talk about Shopee’s amazing growth in the past, it doesn’t make much sense now because of the difficulties we’re facing. Certainly, the company cannot let the loss happen any more, “- the director shared. Why didn’t Sea focus on profits earlier, in a better time? Wasn’t it easier to develop in previous years than to let difficulties pile up like now?
That’s also why Sea Ltd., doesn’t mind making a profit, but instead accelerates its growth using the funds raised on the open market to boost its growth. it. They really don’t care whether the financial results show a profit or not.