GoTo Plans to Cut 1,000 Workers

11 November 2022 21:19 WIB

Gojek's online motorcycle taxi service partner shows the logo of the Gojek and Tokopedia mergers circulating on social media at the Sudirman Train Station passenger shelter, Jakarta, Friday, May 28, 2021. A number of Gojek driver partners hope that the merger of the two "startup" companies Gojek and Tokopedia will have a positive impact on partners with increased bonuses and incentives because the merger has increased the value or valuation of the company. ANTARA PHOTOS/Aditya Pradana Putra

TEMPO.CO, JakartaGoTo, the merger of ride-hailing provider Gojek and e-commerce Tokopedia (IDX: GOTO), reportedly planned to lay off 1,000 workers as a form of the company’s financial efficiency.

As reported by Bloomberg on Friday, November 11, 2022, the number is equal to more than 10 percent of the workforce and will affect all divisions.

A Bloomberg source who wished to remain anonymous said that the Jakarta-based company, which also operates in Singapore and Vietnam, will announce staff cuts in the coming weeks. "The size of the reduction is subject to change," the source added.

GoTo representatives refused to comment when asked for confirmation. Previously, the company’s executives said that the management was striving to balance spending on growth with its effort to reach profitability.

The Bloomberg source also stated that GoTo brought up the layoff plan in line with the plan to prepare quarterly performance results on November 21, 2022.

As of August 2022, GoTo reported that its second-quarter adjusted loss before interest, taxes, depreciation and amortization widened to Rp4.14 trillion ($264 million) from a Pro-forma loss of Rp3.9 trillion a year earlier. 

If the layoff is announced, GoTo will join tech giants such as Meta Platforms Inc. and Apple Inc. which also cut staff after years of expansion due to the increasingly uncertain global economy.

The recent wave of layoffs in the technology industry is nearing the level of the early phase of the COVID-19 pandemic. Both large and small companies continued to limit their ambitions and prepare for the difficult times ahead.

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