Singapore based gaming and e-commerce company sea ltdalso Garena The parent company, recently announced that it will lay off hundreds of employees from its Shanghai office for the Garena unit. The company is taking this harsh step after a quarterly loss of 1 billion dollars. In addition, the company earlier announced the closure of its streaming platform Boyah! Garena units.
An anonymous source close to GamingonPhone has revealed that it’s a company-wide restructuring and with a lot of losing projects, Sea is terminating and suspending several experimental and upcoming projects along with job postings. and modern Report From Reuters also hints at the same thing.
Apart from job positions, a number of projects are also closed by Sea Ltd
Along with job positions in Shanghai officeSea is also cutting several projects from the Garen unit. Several cloud and blockchain projects have also been shut down to reduce company costs and increase efficiency. Among the most important projects, The SEA Labs project, a development unit project, has also been discontinued for the time being.
The sudden closure of these projects will cause many people to lose their jobs. Although the decision is very difficult, a Sea spokesperson told Reuters they are doing so because Sea needs to “Focus resources on core operations. Additionally, Sea is looking to improve efficiency and focus on the company’s long-term strengths.
Sea Ltd hard hit by Free Fire ban in India
Many gaming companies experienced a boom in their businesses when the pandemic arrived. The sea was no stranger to this. free fire It is one of the most popular battle royale games in the world, bringing in most of the company’s revenue. Free Fire’s huge player base in India contributed most of Sea’s quarterly revenue. The game has brought in more than $4 billion US dollars to the company since its launch in 2017.
Sea’s post-pandemic business has not been as sustainable as she saw 72 percent drop in its stock price this year. Add to that a sudden free fire tires by the Government of India for security reasons that affected the business of the company the most.
As a result, the The game saw a 39% decrease in the quarterly player base. Earlier in March, Sea also warned that its Garena wing had taken a heavy hit from the banned game in India, where the company saw a sharp decline in the company’s stake. The company expects a larger loss during the second quarter of the year.
What are your thoughts as Sea Ltd is ready to lay off staff at its Garena unit? Let us know in the comments below!