Shopee lays off hundreds of developers to shift focus to AI

In a significant move reflecting the shifting priorities of the global tech industry, Shopee, the e-commerce giant owned by Singapore-based Sea Ltd, has laid off hundreds of developers.

As of June 2026, these cuts account for roughly 8% of the company's developer workforce, with a specific focus on quality assurance roles.

This restructuring comes as CEO Forrest Li pushes for a strategic pivot toward artificial intelligence, ambitiously aiming for a $1 trillion market capitalization.

To achieve this, Shopee is currently partnering with Google to integrate AI-driven features like advanced shopping agents and smarter search functionality across its platform.

While the company describes these layoffs as a routine operational review, industry analysts see a clear trend: major tech firms are rapidly prioritizing AI talent and automation over traditional engineering roles.

This move follows a history of aggressive structural adjustments at Sea Ltd, as it continues to battle intense competition in markets like Indonesia and Brazil from rivals such as TikTok Shop and Lazada.

Despite the challenges, the company states it is providing support packages for all impacted staff, aligning with local labor guidelines during this transition.