Sea Ltd., a leading e-commerce and video gaming tech conglomerate, has announced that it will be giving most of its employees a 5% pay increase effective this July. This move comes after the company turned profitable and achieved self-sufficiency following years of financial struggles.
During the technology industry's downturn, Sea Ltd. managed to slash costs drastically, resulting in an increasing cash balance rather than a shrinking one every quarter. The across-the-board pay rise sends a strong signal that the company has finally turned the corner after years of bleeding losses.
The announcement marks a significant reversal from just two quarters ago when CEO Forrest Li surprised investors with a company-wide salary freeze accompanied by deep layoffs. In March, Sea reported its first-ever quarterly net profit - approximately 14 years after being founded.
Last year, to demonstrate their ability to produce profits and regain investor confidence, Sea took drastic measures including cutting thousands of jobs, retreating from major markets, and slashing more than $700 million from its quarterly sales and marketing expenses.
In his recent 1,300-word statement addressing these changes at Sea Ltd., CEO Forrest Li described some “painful” decisions made during the turnaround effort:
Despite these challenges in recent years , this positive shift for employees shows signs that things may now be looking up for both staff members and overall operations at SEA ltd.
With this new development marking an important turning point for the company's financial stability and growth prospects moving forward; it is hoped that increased employee morale will translate into even greater success on all fronts within SEA ltd.'s diverse business interests