TikTok-Tokopedia Merger Casts Shadow of Layoffs
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8 August 2024 09:20 WIB
TEMPO.CO, Jakarta - TikTok officially partners with PT GoTo Gojek Tokopedia Tbk (GOTO). According to GoTo, the merger has attracted a significant number of Micro, Small, and Medium Enterprises (MSMEs). The China-based social media giant is committed to enhancing the capacity and competence of Indonesian MSME players.
“Following the merger, more than 90 percent of our merchants are MSMEs,” GoTo said in a written statement on Monday, December 11, 2023.
TikTok agreed to invest over US$1.5 billion or about Rp23 trillion in GoTo, acquiring more than 75.01 percent of its shares. This investment proves the company's long-term commitment to supporting the operations of e-commerce giant Tokopedia.
However, challenges have arisen within five months of the merger. Reports suggested that Tokopedia is planning to lay off 450 employees at the request of ByteDance Inc., TikTok's parent company.
Nuraini Razak, Director of Corporate Affairs at Tokopedia and Shop Tokopedia, attributed the decision to overlapping roles within the new e-commerce divisions following thorough reviews and considerations.
“We’ve identified several similar roles across different teams that need adjustment,” Nuraini said on Thursday, June 20, 2024, as reported by Tempo Magazine.
She explained that the overlap in roles resulted from the merger of Tokopedia and TikTok Shop in January 2024. Since February 1, 2024, both companies' employees have been under ByteDance's umbrella since TikTok became Tokopedia's controlling shareholder.
Signs of potential layoffs emerged when ByteDance assumed ownership. A senior Tokopedia staff member revealed that the new management planned to review the business plan in mid-2024 and change policies, such as bonuses and meal allowances.
The staff also said that ByteDance was concerned about Tokopedia's large workforce, comparing it with its own lean structure, where a 12-person creative team manages global operations, while Tokopedia has 80 members in the creative team.
At the beginning of the merger, TikTok and Tokopedia enjoyed substantial revenue growth. However, the challenges are inevitable, casting shadows of mass layoffs.
RACHEL FARAHDIBA R | RIANI SANUSI PUTRI | RETNO SULISTYOWATI I MAJALAH TEMPO
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