Indonesian tech group PT GoTo Gojek Tokopedia Tbk has announced plans to lay off 12% of its workforce, equating to approximately 1,300 employees.
In a statement, the company pointed to “challenging macroeconomic conditions” as the rationale behind the layoffs, emphasizing the need for adjustments to navigate the current market landscape. The statement further highlighted the necessity to accelerate its journey towards becoming a sustainable and financially independent business, focusing on its core services in on-demand delivery, e-commerce, and financial technology.
Earlier this year, GoTo made its debut on the Indonesian Stock Exchange and was already anticipating potential staff reductions of around 10%. The tech group has reported achieving nearly 800 billion IDR (around $50.9 million) in structural cost savings across various sectors including technology, marketing, and outsourcing.
GoTo is not alone in facing financial challenges, as other major Southeast Asian e-commerce companies, such as Shopee and Foodpanda, have also implemented job cuts in response to unstable economic conditions.
Additionally, earlier this year, GoTo partnered with Google Cloud to support its growth trajectory.