SINGAPORE: Shopee has cut jobs in Singapore, with software engineers among those affected, as the e-commerce giant continues a major dive into artificial intelligence (AI).
The company confirmed the workforce adjustment on June 10, saying it regularly reviews staffing needs and may make changes based on business and operational priorities. The decision was made as Shopee’s parent company, Sea Limited, accelerates investment in AI projects across its businesses.
Employees at Shopee’s Singapore headquarters were informed of the layoffs on Monday. The company was also cutting hundreds of developer roles globally, representing about 8 per cent of its developer workforce, Channel NewsAsia (CNA) reported, citing Bloomberg.
Software engineers among those affected
Two Shopee software engineers, on condition of anonymity, said they were among those retrenched. One of them said he first received a message through the company’s internal communication platform before being called into a meeting with human resources.
Affected staff were reportedly offered an “N+2” package, which provides one month’s salary for every year of service, plus an additional two months of pay. The total number of affected employees in Singapore is still unknown.
Another employee, whose role wasn’t impacted, said there was no company-wide town hall or email announcing the exercise. He was aware of at least 10 colleagues who lost their jobs, mostly from product and engineering teams.
The retrenchments are concerning because they involve software developers, a profession viewed as one of the safer bets in the digital economy.
As AI tools become more capable of writing code, testing software and automating routine development work, technology firms are increasingly reassessing how many engineers they need.
Union and task force step in
Sea Limited isn’t unionised in Singapore, but the company informed the Creative Media and Publishing Union (CMPU) before the retrenchment exercise.
The union said the advance notice allowed it to work with management to support affected employees and ensure compensation packages met expectations. Union representatives were also present during the exercise to assist.
The Taskforce for Responsible Retrenchment and Employment Facilitation said Sea was working with CMPU to support affected employees whose final working days fall between late June and late August.
The task force added that Sea had committed to providing retrenchment benefits that align with Singapore’s tripartite guidelines on responsible retrenchment.
Read related: NTUC: Singapore is looking into ways to better support workers before job losses
AI becomes a bigger priority for the business
The layoffs come against the backdrop of Sea’s growing AI ambitions. Sea’s chief executive officer (CEO), Forrest Li, has previously described AI as a major growth opportunity for the company.
Mr Li told employees in 2025 that Sea could potentially reach a trillion-dollar market valuation if it made the right decisions around AI and doubled down on the technology.
Last month, Bloomberg reported that Sea had committed fresh funding to both internal and external AI initiatives as it looked for new growth opportunities beyond e-commerce.
In April, the company launched an Artificial Intelligence Centre of Excellence in Singapore with support from Digital Industry Singapore. At the launch, Mr Li described AI as a core capability that would strengthen product development, operations and long-term value creation.
Workforce cut even when business profits rise despite higher spending
For the first quarter of 2026, the company reported net income of US$438.2 million (S$564.31 million), up 6.7 per cent from a year earlier. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 9.3 per cent to US$1 billion (S$1.28 billion).
At the same time, Sea’s spending climbed sharply. Operating expenses rose 43.4 per cent year-on-year to nearly US$2.6 billion (S$3.34 billion), while cost of revenue increased 51.7 per cent to US$4 billion (S$5.15 billion).
Read related: Singapore retrenchments 2026: Amazon, Tiger Beer, Yeo’s, and more firms cut jobs amid rising energy costs and weak demand
AI is taking over jobs at every level of the workforce
The latest cuts again show a change taking place across the technology sector. Companies are pouring money into AI while seeking ways to streamline teams and automate work previously handled by humans.
The development is another reminder that AI is taking over jobs at every level of the workforce. The subject is no longer whether AI will affect knowledge workers; it is increasingly about which tasks are still uniquely human and how workers can adapt as technology takes on a larger role.
Job cuts are never easy for those affected. Companies pursuing AI-driven growth should continue investing in retraining and skills development, helping employees move into new roles instead of leaving them behind.
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