Sea Ltd., a major Singapore-based tech company, has reported its first quarterly profit in its 14-year history.
This milestone followed a significant strategy shift led by CEO Forrest Li, which saw the company implementing ruthless cost-cutting measures and focusing on profitability.
Amid financial pressure, Li initiated a series of changes, including layoffs that affected about 10% of the workforce and salary freezes.
Other austerity measures included travel and meal expense caps, as well as the removal of certain office perks.
Li and his leadership team also surrendered their salaries.
Despite the challenging period, Sea Ltd.’s tough measures paid off, resulting in a $427 million GAAP-sanctioned net income.
Furthermore, the company’s stock soared by 22%, and its market value has more than doubled since November.
Moving forward, Li emphasised the importance of continued cost reduction and business efficiency.
Sea’s success story may serve as a blueprint for other tech firms grappling with the balance between growth and profitability.
