Tokopedia Mass Layoffs Carried Out in Accordance with Regulations, Indonesian Ministry Says

TEMPO.CO, Jakarta - Indonesian e-commerce company Tokopedia is laying off its 450 employees. The Ministry of Manpower said it would ensure that the dismissal process was carried out in accordance with regulations.

The ministry's Director General of Labor Relations Development and Social Security for Workers, Indah Anggoro Putri, said that her office was continuing to communicate with the management to make sure that the layoff was properly carried out according to the rules and did not cause any disputes. "The layoff is still ongoing and it is going well according to the regulation," Indah told Tempo via a messaging app on Friday, June 21.

She confirmed that to date, no complaints have been received by the Ministry of Manpower regarding the massive layoffs at Tokopedia. "We are in intensive communication with the management," Indah said.

Tokopedia's vice president of corporate communications, Nuraini Razak, said earlier that the layoffs were due to overlapping roles in the company. The decision was made after reviewing the performance of each unit and department or function in the company to build a stronger e-commerce team in Indonesia.

"One of the challenges we face is overlapping roles in some of our new e-commerce teams," said Nuraini on Thursday, June 20.

According to Nuraini, the company had identified several similar roles from different teams that needed to be aligned. She was reluctant to detail the roles, but she did assure that her side had carefully reviewed and considered the decision.

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