Overall, Sea generated a total operating loss of $840 million in the second quarter alone, and investors were not impressed. But the company is looking to change course. Sea is closing up shop in Argentina and laying off most staff in Chile, Colombia and Mexico. Sea will also downsize the Garena unit. This is a decision that the company has been mulling for some time. Along with the game industry job cuts, multiple new games were canceled, along with a slew of layoffs on small teams in the past weeks. Investors reacted to this decision positively. The company is not out of the woods yet, though. For the longest time, the e-commerce site Shopee was subsidized by the popularity of the game Free Fire. It has not helped that India banned the game. In addition, the high level of user growth for the Garena unit is already normalizing; we cannot expect active users to continue to grow forever. The combination of these factors is not great news for Sea.