- Sea Limited SE froze salary hikes for most staff and paid out lower bonuses this year, bracing founder Forrest Li's warning regarding a worsening global economic environment in 2023.
- The CEO discussed the need to focus on profitability after a problematic 2022 in an internal memo, Bloomberg reports.
- Li warned against the war in Ukraine and global inflation leading to an even more challenging 2023.
- Sea dodged salary hikes for staff who missed their promotions.
- The gaming and online retail giant lost 77% of its value this year as rising interest rates and intensifying competition weighed on the business.
- Sea downsized 7,000 jobs, or 10% of its workforce, as it struggled with ballooning losses and winning back investors.
- Sea also shuttered e-commerce operations in some European and Latin American markets and planned to cut expenses to cope.
- In November, Sea disclosed a smaller-than-expected quarterly loss, spurring hopes that measures to curtail expenses will help it accomplish profitability in the face of slower growth.
- "I know such news can be hard to bear, especially around the holiday season," Li wrote. "These are temporary but necessary measures to help us build toward a bigger, brighter future."
- In September, Sea's top management agreed to forgo their salaries and tighten company expense policies amid the economic slowdown.
- The leadership team decided to forego cash compensation until the company reached self-sufficiency.
- Price Action: SE shares traded lower by 5.63% at $49.52 on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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