Seas Shopee shuts operations in Argentina, Chile, Colombia, Mexico -sources

Fanny Potkin, Josh Ye

Sea Ltd’s e-commerce arm told employees on Thursday it was shutting local operations in Chile, Colombia and Mexico, and leaving Argentina entirely, according to three sources with direct knowledge of the matter and an internal email.

The Singapore-based company will maintain cross-border operations in the first three markets but will cut the majority of its teams in the countries, affecting dozens of employees, the sources said. Brazil, in which Shopee has become a dominant player, will not be affected.

In an internal email seen by Reuters, Shopee chief executive Chris Feng wrote to employees that in light of the current elevated macro uncertainty, the company needed to focus resources on core operations” and had decided to concentrate on a cross-border model in Mexico, Colombia and Chile.

Shopee confirmed later in a statement to Reuters it would operate a “cross-border model in Chile, Colombia and Mexico, and close in Argentina.”

Sea saw its market value soar to more than $200 billion last October as its gaming and e-commerce units surged in popularity during the pandemic, but its shares have tumbled since then and are now worth just $27 billion.