Shopee cuts hundreds of developer jobs globally as it pivots to AI

Shopee has begun laying off hundreds of developers globally, including employees at its Singapore headquarters, as the e-commerce platform restructures its workforce amid a broader industry pivot toward artificial intelligence. The cuts affect approximately 8 percent of the company's developer workforce worldwide, according to a Bloomberg report. Employees in Singapore confirmed they were laid off on Monday, with product and engineering teams reportedly the most affected.

Sea Ltd, Shopee's parent company, informed the Creative Media and Publishing Union in advance about the workforce adjustment, with union representatives present on site during the exercise to assist affected employees. Severance packages reportedly amount to one month of salary for every year of service plus an additional two months' salary.

The layoffs come as Sea Ltd chief executive Forrest Li has outlined ambitious AI-driven growth plans, stating that a trillion-dollar market capitalisation is achievable if the company successfully capitalises on AI opportunities. Sea has already integrated AI into product recommendation systems and seller tools, announced a partnership with Google to develop AI-powered shopping agents, and established dedicated teams to identify AI investment opportunities.

Why it matters for Singapore: Shopee's restructuring reflects a broader trend in Singapore's tech sector where AI adoption is creating a two-speed job market: demand for AI talent is surging while traditional developer roles face cuts. For Singapore's workforce, the shift underscores the urgency of reskilling and the growing gap between AI engineering roles — which command premium salaries — and conventional software development positions that are increasingly being automated or offshored.