Thekabarnews.com—Shopee has laid off hundreds of software engineers in several countries as part of a major restructuring of the business. This information is according to Bloomberg.

The cuts affect about 8 percent of Shopee’s global developer workforce, including those at the company’s Singapore headquarters.

Shopee confirmed the layoffs, saying it periodically reviews its operational needs and its organizational structure to ensure long-term business effectiveness.

The changes were part of the company’s normal course of business. It makes organizational changes and assesses operational needs occasionally, the statement said.

Shopee did not specify how many employees were affected or where it carried out the layoffs.

The new move comes as Shopee’s parent company Sea Limited seeks to ramp up the use of artificial intelligence (AI) across its businesses. This includes the e-commerce platform Shopee. Additionally, it includes the digital entertainment arm Garena.

The company has not said whether the layoffs are related to its AI efforts. However, the timing is consistent with a broader trend in the global IT industry.

But many tech companies have trimmed some of their workforces and made their operations more efficient and less costly. They’ve also beefed up their AI spending.

Over the past 12 months, companies around the world have increased their adoption of AI-based solutions. These solutions help improve software development, customer service, logistics, and business analytics.

The rapid advancement of AI has forced many companies to reorganize teams. Also, they review labor needs to keep pace with shifting business objectives.

Sea Limited is using AI across its vast portfolio of products and services to boost operational efficiencies. This helps solidify its standing in the Southeast Asian digital economy.

And it has also been investing heavily in AI technology to improve the consumer experience. This investment benefits its e-commerce, gaming, and financial firms.

The IT companies are still trying to find a way to balance long-term investments in artificial intelligence against the need to cut operating expenses. At the same time, such activity is happening in a more competitive market.

With the maturing of AI capabilities, many firms have recalibrated their hiring strategies. They have also reallocated resources and reorganized technical teams to meet new business objectives.

Sea Limited has not said it is changing the long-term business plans for Shopee or Garena after the latest round of layoffs.

The company continues to invest in expanding its digital portfolio and operational efficiencies across its regional businesses.

That aligns with a broader trend in the global tech industry. Companies are pouring more into building artificial intelligence and revamping their businesses to cater to changing market needs. Shopee has not directly tied the recent job cuts to the adoption of AI.

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