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Indonesia's Tech Giant GoTo Cuts 1,300 Workers

18 November 2022 13:10 WIB

TEMPO.CO, JakartaGoTo, a merger of ride-hailing provider Gojek and e-commerce firm Tokopedia, has laid off 1,300 workers or about 12% percent of its total employees in Indonesia, Vietnam, Singapore, and India. The figure is reportedly the largest cut in Indonesia.

Gojek disclosed that the step was taken in a bid to encourage the company's financial independence. “So that the company can continue to bring positive impacts on millions of consumers, driver-partners, and traders in the GoTo ecosystem through healthy and sustainable growth,” the company said in its statement, Friday, November 18, 2022.

Gojek said global macroeconomic challenges caused a significant impact on business players around the world, including GoTo. Like other big firms that have made layoffs, GoTo feels the need to adapt to ensure its readiness to face the challenges ahead.

Indonesia’s biggest tech firm will thus focus on its three core business services, namely on-demand, e-commerce, and financial technology given that their growth is deemed the most consistent. “This difficult decision was inevitable to make the company more agile and maintain growth,” it said.

Workers affected by the layoff will receive the notification today. GoTo stated that it would be committed to providing comprehensive support during the transition period.

Affected employees will receive a compensation package in accordance with the laws and regulations of each country it operates. GoTo also provides a number of financial supports, including an additional one month's salary and termination pay (notice in-lieu). Job search support and counseling services will also be available.

“The decision does not affect GoTo's services to consumers and the company's commitment to driver and merchant partners,” it emphasized.

This adds to the list of tech giant companies that initiated mass layoffs in 2022, including Microsoft, Meta Platforms Inc., and Apple Inc. The wave of layoffs in the technology industry has started since the early stages of the COVID-19 pandemic as companies are increasingly limiting ambitions and preparing for the difficult times ahead.

RIANI SANUSI PUTRI

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