1. Startups

Lummo Reportedly Laid Off the Majority of Employees

There is potential to change the company's business. In total, Lummo has obtained investor funds worth more than IDR 2,2 trillion

Lummo, a startup providing SaaS for business liaison, reportedly carried out large-scale layoffs this month. It is stated that there is a potential for 99-100% of employees to be furloughed. Nonetheless, the business entity continues to operate and is not in a state of bankruptcy.

A similar strategy has been used by startups quick commerceBananas last year the company changed its business under a new name but with the same legal entity and investors.

According to the info we received, there is a potential for business changes/pivots to be made by startups that acquire total funding of around $149 million (over 2,2 trillion Rupiah), including VC supported by Amazon Founder Jeff Bezos in a Series C funding round.

DailySocial.id have tried to contact the company, but they refused to provide an official statement.

Based on recent monitoring on LinkedIn, a number of Lummo employees have displayed #OpentoWork status on their profile pages. Previously, Lummo had time cut 100 employees by the end of June 2022 and stop LummoShop service expansion.

In early 2020, Lummo, previously known as BukuKas, did this rebranding TOKKO which is under BukuKas, and is also involved inrebranding become LummoSHOP. They said that this name change marked Lummo's ambition to become top of mind MSME solutions. The name BukuKas is considered less aspirational of the company's vision to reach more MSME segments.

Startup Layoffs

Layoffs will continue in early 2023. Based on our records, there are nine startups in the country that are downsizing their organizations throughout the first quarter of 2023, including GoTo, Zenius and Shopee Indonesia.

StartupsNumber of Employees Affectedbulan
Fresh24% January 2023
OLX Cars300 peopleJanuary 2023
Moladin360 peopleFebruary 2023
ZeniusN/AFebruary 2023
Fazz FinancialN/AMarch 2023
Shopee Indonesia500 peopleMarch 2023
Goto600 peopleMarch 2023
Homemade Shox100%March 2023
LummoN/AMarch 2023

Source: Processed by DailySocial.id

While, Startup Report 2022 reported that there were as many as 20 Indonesian startups doing this layoffs. Some of them pivot to a new business. Startups quick commerce Bananas is one of those who admits they failed to find a suitable economic unit.

More Coverage:

Source: Startup Report 2022

The efficiency steps taken by startups cannot be separated from economic uncertainty in the midst of the global crisis. Startup players are restructuring their businesses to anticipate the difficulty of obtaining new funds for operations.

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