Shopee is laying off approximately 8% of its global developer workforce, including quality assurance roles, as it adopts artificial intelligence tools. The cuts take effect this week, with last working days scheduled between the end of June and the end of August. This shift highlights the immediate workforce adjustments HR teams must manage as companies pivot toward AI-driven operations.
Managing the transition in Singapore
In Singapore, the Taskforce for Responsible Retrenchment and Employment Facilitation has been informed of the workforce changes. Sea, Shopee's parent company, is providing a retrenchment package aligned with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment. The Creative Media and Publishing Union (CMPU) is working closely with management to support affected employees. A CMPU spokesperson told The Straits Times, "The union is working with the management to ensure that affected members and workers are offered fair compensation packages, and that the adjustment is conducted fairly and responsibly, in accordance with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment."
The role of AI in the decision
It remains unclear whether the cuts at Shopee are a direct result of AI adoption, though the timing coincides with the company's broader technology push. Sea previously established a dedicated team to scout for new AI investments. Last year, Sea CEO Forrest Li said a trillion-dollar market capitalisation was possible if the company doubled down on artificial intelligence, according to The Straits Times. HR leaders overseeing such transitions must balance technological strategy with responsible workforce planning, making it critical to understand AI for Human Resources when anticipating similar organizational shifts.
Why this matters for human resources professionals
HR teams must prepare for workforce reductions tied to AI integration by establishing clear, transparent communication channels before cuts occur. Proactive engagement with unions and local employment taskforces ensures compliance with retrenchment guidelines and protects employee welfare. Developing internal capabilities around the AI Learning Path for HR Managers equips talent leaders to forecast skill gaps and manage the human side of automation responsibly.
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