Shopee trims 8% of developer roles globally amid growing AI push

Singapore-based e-commerce giant Shopee has initiated a fresh round of layoffs affecting employees in its Singapore headquarters and developer teams globally, as parent company Sea accelerates its investment in artificial intelligence (AI).

The retrenchment exercise comes amid reports that Shopee is reducing approximately 8% of its global developer workforce, with software engineers and quality assurance professionals among those affected.

In a statement, Shopee said it regularly reviews its staffing requirements and may make workforce adjustments based on operational and business priorities.

"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," a company spokesperson said.

While the company did not disclose the number of employees impacted in Singapore, local media reports cited affected workers who said they were informed of their layoffs earlier this week. Employees were reportedly offered severance packages based on tenure, including additional months of salary support.

According to employees familiar with the exercise, the affected roles were concentrated largely within product and engineering functions. The company has not publicly linked the layoffs directly to AI adoption.

The workforce reduction comes as Sea deepens its focus on artificial intelligence. Earlier this year, the company established an AI Centre of Excellence in Singapore with support from Digital Industry Singapore. Sea CEO Forrest Li has repeatedly highlighted AI as a key growth driver, reportedly telling employees that the company could achieve a trillion-dollar market valuation if it successfully capitalises on emerging AI opportunities.

Sea has also increased investments in both internal and external AI initiatives as it seeks growth avenues beyond its core e-commerce business.

Despite rising costs associated with expansion and technology investments, Sea reported stronger financial results in the first quarter of 2026. Net income rose 6.7% year-on-year to US$438.2 million, while adjusted EBITDA increased 9.3% to US$1 billion.

In Singapore, the Taskforce for Responsible Retrenchment and Employment Facilitation confirmed it had been informed of the layoffs and said Sea is working closely with the Creative Media and Publishing Union (CMPU) to support affected employees. The company has also committed to providing retrenchment benefits in line with Singapore's tripartite guidelines on responsible workforce restructuring.

The latest layoffs come against the backdrop of several workforce adjustments across Shopee's regional operations in recent years. In 2024, the company moved to quell reports of mass layoffs in Indonesia after social media speculation suggested widespread job cuts. 

Shopee Indonesia clarified that it was implementing a relocation programme that transferred customer service employees to operations hubs in Solo and Yogyakarta, a scheme that had been in place since 2023. While some employees accepted the move, others reportedly resigned rather than relocate and were provided support in accordance with Indonesian labour regulations.

The Indonesian development followed an earlier restructuring exercise in March 2023, when Shopee Indonesia reportedly laid off between 200 and 500 employees, primarily from its customer service division, as part of broader efforts to streamline operations. 

Across the group, Sea had cut more than 7,000 jobs since 2022 as it sought to improve profitability following the pandemic-driven e-commerce boom.