When the business situation continued to be difficult, Garena’s parent company also had to continuously lay off many employees in different fields.
The year 2022 can be seen as the time when Sea Group – Parent company of Garena encountered the most problems when the bad news kept coming. During 2022, the company’s stock price also continuously declined to show that the company’s situation is facing many difficulties.
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Founder and CEO of Sea Group – he Li Xiangdong In September 2022, there were also shared that, when interest rates increased and inflation lasted, the market became chaotic. This is also the main reason why the company encountered many difficulties and could not achieve the set goals.
Right now, the company’s main goal is that within the next 12-18 months, the company will achieve positive cash flow as soon as possible.
According to many sources, the company has laid off a large number of employees, mainly in the e-commerce segment. Shopee of Sea, and several SeaMoney digital financial services divisions.
E-commerce used to be one of the business areas that helped Sea Group achieve the most profit, but the business situation in 2022 is extremely bad. Most notably, in March of this year, Shopee had to close its business operations in India and France, along with the withdrawal from the Spanish market and June.
When it comes to games, Garena is also in the process of cutting costs and increasing efficiency quite early. Most notably, in September of this year, Garena had to close the live broadcast application Garena BOOYAH! and stop working in blockchain-related projects or games on the cloud system.
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The revenue reports of Sea Group’s games segment also showed a certain decline in Q2, partly due to the decline in revenue of its flagship product, Free Fire.
Facing this situation, Garena side has continuously experimented with new directions, typically continuing to open the trial door of the SLG game, an Alpha Ace shooter with 5v5 FPS gameplay.
Despite being a promising product, Garena still has to perfect it before launching it officially. Because of this, it is not easy for Sea Group to regain positive profits in the future
Source link: Garena’s parent company continuously fired employees because the business situation did not improve