Shopee in disaster? Executives run out of pay amid financial uncertainty
The operation was also streamlined in Latin America and employee perks were cut
the party of shopee seems to be emptying around the world. O e-commerce, that arrived at Brazil in 2019, it has always acted aggressively, subsidizing prices and deliveries to advance against the competition.
However, it has recently taken tough decisions to contain expenses which, until then, had expanded aggressively. The murky scenario was highlighted by CEO Forrest Li himself, who decided to send an email to global employees to warn that the company’s pocketbook has gone flat.
In the memo, it also stated that some employee perks will be cut. Among them: travel refunds are now limited to economy class flights and $150 per night in hotels. In case of international travel, meals up to US$ 30 and, as for transport, as cheap as possible.
The toughest measure, from the point of view of top executives, is the fact that they won’t be paid until Shopee achieves positive cash flow, according to Bloomberg. Until the tightening takes effect, the company estimates between 12 and 18 months of lean cows.
In the broader scenario, the operation was also streamlined. In Argentina, the app was closed, and its presence was also reduced in Chile, Colombia and Mexico.
Prior to that, Shopee had also closed down in India, France and Spain. Countries like Thailand, Indonesia and Vietnam have also seen their numbers reduced.
On balance, the numbers don’t excite either. Revenue grew 29%, but net loss came in at $569.8 million in Q2 2022, boosting losses by 77.4% year-on-year and justifying the belt-tightening.