Following a nearly $1 billion quarterly loss, gaming and e-commerce company Sea (SE.N) is halting its game Livestream platform and shutting down projects at its development unit, according to two sources familiar with the matter.
According to sources, employees were informed that staff numbers at its gaming Livestream business and development arm would be reduced.
According to the sources, employees at Booyah!, a gaming Livestream and community app that is part of Sea’s gaming unit Garena, were told they would be laid off and the app would no longer be updated. According to one source, this would imply the layoff of 30 to 40 people.
According to the source, Sea Labs, the tech conglomerate’s development arm, was closing some of its largest experimental projects and cutting staff, including blockchain and public cloud projects.
A third source familiar with the situation confirmed that Sea had shut down some major projects and laid off “dozens of people,” citing Sea’s plan to increase profitability.
A Sea spokesperson told Reuters that the company had “made some changes to improve efficiency in our operations that impact a number of roles,” and that the company would focus on the “long-term strength of our ecosystem.”
The spokesperson would not say how many jobs were lost.
Following a surge in its fortunes during the pandemic, Sea has suffered setbacks that have resulted in a 72% drop in its share price this year. Sea warned in March that Garena was being harmed by government bans in India.
According to media reports, Sea cut jobs across its e-commerce division Shopee in June, not just in Southeast Asia but also in Mexico and Latin America.
Last month, the New York-listed technology firm reported a larger-than-expected loss for the second quarter and lowered its e-commerce forecast for the year, sending its shares down 14%.
Garena’s quarterly paying users fell 39% in the quarter.
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