3 Percent Shopee Indonesia Workers Affected by Layoff, Reportedly

19 September 2022 17:18 WIB

TEMPO.CO, Jakarta - Multinational tech company Shopee laid off a number of workers across regional branches, according to Tempo's source from within the company the layoff affects 3 percent of Shopee Indonesia's employees.

The company’s head of public affairs Radynal Nataprawira assured that the business and service operations to customers, sellers, and partners will run normally. 

In terms of the layoff, Radynal pledged to fully support the rights of the workers who were laid off through the issuance of severance packages overseen by Indonesian laws. Each former worker will be given severance pay in the amount of one month's wage. 

Former employees affected by the mass layoff will still be allowed to utilize the health insurance facilities until the end of this year.

"Shopee's achievements so far cannot be separated from the hard work and commitment of the Shopee Team. We thank you for the contribution of the entire Shopee Team so far," Radynal said.

Radynal explained that the Singapore-based e-commerce company decided to layoff its workers due to global economic pressure. The current situation, he explained, requires companies to quickly adapt and evaluate business priorities in order to be more efficient.

He considered the termination of employees as an efficiency measure and in line with the startup's focus on achieving independence and sustainability. 

According to the Sea Group website, which is Shopee’s parent company, recorded an increase in revenue in the second quarter of 2022 by 29 percent year on year (yoy). The company's revenue in the second quarter of 2022 reached  2.94 billion US dollars.

RIANI SANUSI PUTRI

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