Sea Limited’sSE top management agreed to forgo their salaries and tighten company expense policies amid the economic slowdown, Bloomberg reports.
The leadership team decided to forego cash compensation until the company reaches self-sufficiency, CEO Forrest Li said in an internal memo days after Sea shut down operations in some markets and trimmed staff across its divisions.
Sea reported a nearly $1 billion quarterly loss in April-June.
Sea’s gaming arm Garena will likely post its first decline in bookings this year, and last month, it withdrew its 2022 e-commerce forecast.
Sea acknowledged that the current economic environment would likely persist into the medium term.
Li also confessed head-on the struggle for Sea in an era of rising interest rates, accelerating inflation, and a volatile market curbing online spending and making investors more cautious.
Sea will cap business travel to economy class flight fares, with travel meal expenses limited to $30 daily.
It will also curb spending on hotel stays for business trips to $150 a night and cull reimbursement for meals and entertainment bills.
Twilio IncTWLOrecently prepared to slash its staff by nearly 11% to reduce operating costs and increase operating margins.
Tech giants like Alphabet IncGOOGGOOGL Google, and Meta Platforms Inc (NASDAQ:META) have also warned employees to improve performance or face the consequences.
Price Action: SE shares traded lower by 2.99% at $61 in the premarket on the last check Thursday.
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