Freeze wages and reduce bonuses, "Southeast Asian Little Tencent" Sea spends the winter

According to news in the morning of December 23, Beijing time, Singapore Internet company Sea this year froze the salaries of most employees and reduced the amount of bonuses in response to the company's founder Forrest Li (Li Xiaodong) warned of the deteriorating global economic environment in 2023.

The Asian Internet giant needs to focus on profitability after a tough 2022, according to an internal memo. Li Xiaodong warned that 2023 could be "more challenging". The company is canceling salary increases for unpromoted employees, he added.

"I assure you that we will gain a foothold from the beginning of 2023," Li Xiaodong wrote. "most of the major changes we need to make have been completed."

The market capitalization of the gaming and online retail giant has fallen by about 77% this year because of doubts about its prospects amid rising interest rates and increased competition. A representative for Sea declined to comment on Li Xiaodong's memo.

Sea cut about 7000 jobs, or about 10 per cent of its workforce, in an effort to rein in mounting losses and try to win back investors. The company also closed its e-commerce business in some European and Latin American markets and said it would reduce spending in response.

In November, the company announced a lower-than-expected quarterly loss, raising hopes that spending cuts would help make a profit as growth slows.

"I know such news is difficult to accept, especially during the holidays," Li Xiaodong wrote. "these are temporary but necessary measures to help us build a bigger and brighter future."