What happened
The share price of Sea Limited (SE -0.69%), a Singapore-based gaming and e-commerce company, was tumbling today after a new report was published saying that the company has laid off 10% of its workforce over the past six months.
The tech stock was down by 5.5% as of 1:53 p.m. ET.
So what
A report published by The Information today said that Sea has laid off more than 7,000 of its employees over the past six months.
The news comes after Sea reported disappointing second-quarter results back in August, which has contributed to the company's share price decline of 39% since then.
Sea could be bracing for more economic uncertainty, and investors got a glimpse of management's concerns when the company suspended its full-year e-commerce sales guidance back in August.
At the time, management said, "In our efforts to adapt to increasing macro uncertainties, we are proactively shifting our strategies to further focus on efficiency and optimization for the long-term strength and profitability of the e-commerce business."
In addition to investors reacting to the news of Sea's layoffs, they may also be processing the fact that an analyst at Cowen lowered Sea's stock price target today to $78, down from $106.
Now what
Sea will report its third-quarter results tomorrow, and analysts are expecting a non-GAAP (adjusted) loss of about $1.10 for the quarter.
With the latest layoff news and Sea's e-commerce revenue likely facing headwinds, investors may want to brace for more uncertainty with this stock in the near term.
