“The management team has decided that we will not collect any monetary compensation until the company becomes self-sustaining,” CEO Forrest Li said in an internal memo sent to employees on Thursday, days after Sea closed operations in some markets and cut costs. employees in all its branches. “We now see that this is not a quickly passing storm: these negative conditions are likely to persist into the medium term.”
“As investors flee in search of safe haven investments, we do not expect that we will be able to raise funds in the market,” Li said, reiterating that the corporate’s essential goal for the following 12 to 18 months is to realize positive money flow as quickly as possible. as possible as possible.
The company will limit business travel to economy class fares and can limit travel meal expenses to $30 per day. It may also limit hotel expenses for business trips to $150 per night and eliminate reimbursements for meals and entertainment.
“The only way for us to free ourselves from dependence on external capital is to grow to be self-sufficient and generate enough money for all our own needs and projects,” Li said.
Sea faces increasing pressure to concurrently grow and control costs. Consumers are pulling back on online spending as rising rates of interest and costs weigh on the economy and investors grow to be less willing to finance growth without profits.
‘It’s not a zero-sum world’: Singapore says its global talent hunt is not going to drawback local people
‘It’s not a zero-sum world’: Singapore says its global talent hunt is not going to drawback local people
After coping with a series of extraordinary setbacks this 12 months – including India’s sudden ban of its hottest mobile game – the corporate is ready to take significant steps to maneuver from unbridled growth to profitability.
The company said it expects Garena’s gaming division to see its first decline in bookings this 12 months, and last month it withdrew its e-commerce forecast for 2022.
