Sea Ltd's subsidiary Shopee has confirmed the closure of its operations in several South American countries to focus on its core business resources.
The news was announced by the Chief Executive Officer (CEO), Chris Feng, by telling employees in Chile, Colombia, Mexico and Argentina that Shopee's operations there will be stopped.
According to Feng, the main reason Shopee took the decision was to 'focus on the company's core operations' but they will still focus cross-border capital in Mexico, Colombia and Chile.
According to an internal source of Sea's management, Shopee has been instructed to achieve profit in the main market of Southeast Asia by 2023.
Referring to the matter, Singapore's DZT Research analyst said it was time for Shopee to fully focus on making a profit in their main core market.
For the record, Sea saw their market value jump $200 billion in October with the company's gaming and e-commerce units gaining popularity during the Covid-19 pandemic.
But since the world began to move into the endemic phase, Sea's shares have fallen and now the company's market value is only $27 billion.
In the meantime, the Latin American countries are not the first 'victims' with Shopee also closing its operations in India and France before.
The closure has also caused a large number of workers to lose their source of income, especially last June when Shopee laid off workers en masse.
