Sea’s shares dived as much as 7.6% before recouping some losses in New York. Li’s memo emerged as major backer Tencent Holdings Ltd.’s co-founder Pony Ma delivered an unusually harsh end-of-year message to employees, warning the survival of some of the Chinese firm’s businesses was in question.
Sea Ltd. fell more than 4% after founder Forrest Li announced it was freezing salaries for most staff and paying out lower bonuses this year, bracing for a worsening global economic environment in 2023.
The Asian internet giant needs to focus on profitability after a difficult 2022, the chief executive officer announced in an internal memo this week seen by Bloomberg News. Li warned that, with the war in Ukraine and inflation around the world, 2023 may prove to be “even more challenging.” It’s doing away with salary increases for staff who aren’t promoted, Li added.
