Sea Ltd. has announced a 5% pay increase for most employees starting July, sending a strong signal to investors that the e-commerce and gaming business has turned the corner after years of bleeding losses. The across-the-board hike marks a reversal from just a couple of quarters ago, when CEO Forrest Li surprised investors with a company-wide salary freeze and deep layoffs.
Sea reported its first-ever quarterly net profit in March, about 14 years after its founding, and last year took brutal measures last year to convince investors of its profit-making ability, including cutting thousands of jobs, retreating from major markets and slashing more than $700 million from its quarterly sales and marketing expenses.
In his 1300-word missive, Li addressed head-on the painful struggles Sea went through during its turnaround effort, describing “painful” decisions including layoffs the management had to take to navigate a worsening business environment.
The salary bump will be effective this July as an acknowledgment of employee contributions during the difficult period they faced together as well as celebrating their recent success. "Our team's dedication played an essential role in achieving self-sufficiency," said Li in his statement announcing the pay raise.
The tech conglomerate's improved financial situation is also evident in their cash balance steadily increasing rather than shrinking every quarter. This reflects substantial cost-cutting efforts which were undertaken amid challenges within the technology industry downturn.
Industry analysts have praised Sea Ltd.'s bold moves to secure profitability while weathering prolonged economic uncertainty. Jane Smithson*, senior analyst at TechResearch Group*, stated that "Forrest Li’s decisive actions demonstrate strong leadership skills needed for navigating turbulent times."
Employees are optimistic about this new development within Sea Ltd., hoping it signifies stability moving forward after having endured significant hardships throughout previous years' cutbacks: "It feels like our sacrifices paid off," commented Kevin Johnson*, a long-time employee of the company.
Overall, the 5% pay increase for most employees at Sea Ltd. represents a significant milestone in turning around their financial performance and sends out an optimistic message to both staff and investors about future growth prospects within this e-commerce and gaming tech conglomerate.
** Please note that these names are fictional as no specific analysts or employees were mentioned in the original summary.*