List of Startups in Indonesia That Carry Out Layoffs in 2022-2023
Translator
Editor
10 February 2023 18:42 WIB
TEMPO.CO, Jakarta - The amount of failing start-ups in 2023 will likely continue to grow. Experts have previously predicted that new companies will lay off thousands of workers as they went bankrupt.
Chairperson of the Indonesian Co-Funding Fintech Association (AFPI) Adrian Gunadi had also predicted such condition. “Inflation and threat of global economic recession are expected to hit in 2023 and this will likely force startups to make preparations and carry out measure to improve efficiency,” Adrian said on Thursday, February 9, 2023.
The following is the list of startups that have carried out layoffs during the 2022-2023 period:
- Bananas
Not even one year after it was established, daily needs provider Bananas announced that it would stop operations in October 2022. Through the official Instagram account @bananasindonesia, the company says the main reason was their inability to see the economic unit work.
- Beres.id
Air conditioning, cleaning service, and interior design service provider Beres.id was forced to shut down its business on July 1, 2022. In addition to the impact of the Covid-19 pandemic, CEO Choong Fui Yu said that inflation had also contributed to the company's revenue fluctuation.
- Binar Academy
The fate of 20% of Binar Academy's staff remains uncertain due to global economic uncertainty. This education-based startup is attempting to strengthen its business line by cutting the number of employees in October 2022.
- Fabelio
The shopping platform for household furniture was declared bankrupt by the Central Jakarta District Court. Fabelio or PT. Kayu Raya Indonesia was forced to stop sales on October 5, 2022.
- GoTo
GoTo Gojek Tokopedia (GOTO) enacted a policy to terminate the employment contracts of its 1,300 employees. GoTo adds to the list of Indonesian startups with the latest mass layoffs.
- GrabKitchen
GrabKitchen Chief Communications Office Mayang Schreiber said that it would close operations starting December 19, 2022. It was considered that the company was not running as expected and there was no consistent business growth.
- HappyFresh
Wholesale shopping service provider HappyFresh suspended its services in Indonesia. Company restructuring and the string of difficulties in obtaining additional capital are claimed to be the main cause of their shutdown.
- JD.ID
After laying off around 200 workers in December 2022, one of Indonesia's e-commerce platforms, JD.ID, announced that it permanently shuts down its business starting on March 31, 2023. Rapid business changes forced the platform to give up its business operations.
- LINE Indonesia
News of 80 LINE Indonesia employees being laid off had circulated. However, LINE Indonesia Manager Fanny Verona, in an official statement, denied this and said that the company would focus on the financial technology (fintech) aspect.
- LinkAja
This digital wallet (e-wallet) company is one of many Indonesian companies that enacted mass layoffs in 2023. Rumors suggested that 200 of their workers will be affected by the company's downsizing.
- LummoShop
SaaS (software as a service) business-to-consumer (direct-to-consumer) distributor company LummoShop terminated the contracts of 100 of its staff. Despite Amazon boss Jeff Bezos' financial assistance, Lummo was unable to escape the effects of the recession in July 2022.
- Mamikos
Rooms-for-rent listing platform Mamikos laid off 100 of its workers as of July 2022. The company claimed that it needs to create a healthier and more sustainable company.
- Mobile Premier League (MPL)
The Mobile Premier League (MPL) game developer left Indonesia on May 30, 2022. It is estimated that around 100 people were forced to let go of their jobs.
- QLAPA
This E-commerce devoted to selling local handicrafts went out of business in 2019. Even though it has been operating for 4 years, QLAPA is said to be unable to compete with major platforms such as Tokopedia, Shopee, and Bukalapak.
- Ruangguru
The online course company founded by Belva Devara is also forced to follow the unfortunate trend of startup layoffs. Nearly 50% of its employees were asked to leave the company on November 2022.
- Sayurbox
The start-up company that connects farmers with consumers (farm-to-table), Sayurbox, has also chosen to carry out efficiency measures with Approximately 5% of its employees being laid off.
- Shopee Indonesia
Around 3%, or 187 Shopee Indonesia employees had to lose their jobs in September 2022. A wave of layoffs hit one of the leading e-commerce companies due to the economic situation.
- SiCepat
The SiCepat Ekspress expedition service did not extend the contracts of its 360 employees, claiming that a number of workers do not meet the KPI (key performance indicators) competency standards.
- SIRCLO
SIRCLO Group laid off 8% of its employees starting on November 22, 2022. This startup that provides services for making ready-to-use online store websites was forced to terminate employee contracts in order to maintain business.
- TaniHub
TaniHub is one of the latest startups that have laid off its workers. This agriculture company had also closed its warehouses located in Bandung and Bali.
- Tokocrypto
Tokocrypto, a digital asset sales platform reduced 45 of its workers, which is equivalent to 20% of the company's entire workforce. The downsizing was carried out as an effort to adjust with market conditions.
- Xendit
Even though the startup had been injected with US$150 million of additional funds in 2021. The fintech company Xendit also carried out efficiency measures by reducing 5% of its employees as of October 2022.
- Zenius
200 workers at Zenius had to find themselves jobless in August 2022 due to the company adjusting to organizational needs and economic dynamics.
NIA HEPPY LESTARI | MELYNDA DWI PUSPITA
Click here to get the latest news updates from Tempo in Google News
