let's look at Sea's cost cutting and their focus on the path to profitability

$Sea Ltd(SE)$ Bearish 

SEA Ltd's management prioritizing on growth previously has seen the company's gross profit up 188% year over year for fiscal year 2021 mainly driven by the growth in Shopee, their online marketplace arm. The price of this expansion did not come cheap, at the cash burn rate of $800 million a quarter to be exact. 

With impending slowdown in the world's economy outlook. The management has taken a stance to pivot the company towards self sufficiency while growth take a back seat. 

Here we look at some of the major cost cutting measures the management has taken, starting off with top management deciding they will forgo any cash compensation until the group turns self sufficient.

It was also reported the company has lay off about 10% of the workforce alongside with the winding down of Shopee operations in Latin America, this is followed shortly by news of them leaving India and France market. 

Recent news came in that they are looking for tenant to take over their 20,000 sq ft office in one-north area despite having recently signed a seven year lease with the building management. 

On the bright side, the series of cost cutting moves seem to have worked with quarterly loss significantly lowered than what analyst expected in their most recent earnings report. 

Despite the aggressive cost cut, path to profitability is still not yet in sight. This is not helped by the decline in their gaming arm, Garena which has always been their cash cow until the recent decline. 

The future seems bleak for SEA unless the management is able to recapture their midas touch and focus to recapture and further prevent the decline in their gaming arm to compensate other loss making departments. 

Cost cutting alone will not suffice and along with current market conditions SEA may experience more short term pain ahead.