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Tokopedia Reportedly Will Have Mass Layoffs, GOTO Gives Explanation

Tokopedia will carry out mass layoffs as part of its post-merger cost reduction strategy with TikTok Shop

In the midst of the global economic slowdown, Tokopedia is reportedly planning to carry out mass layoffs. According to reports circulating in the media, the company plans to lay off around 450 employees or the equivalent of 9% of its total staff.

GOTO, in his capacity as a minority shareholder who does not control Tokopedia, provided an official response to the Indonesian Stock Exchange (BEI).

In the letter, Corporate Secretary RA Koesoemohadiani explained that this decision was entirely under the management of PT Tokopedia. He emphasized that this decision was made with the precautionary principle that took into account the interests of all stakeholders.

"As a non-minority controlling shareholder, GOTO believes that PT Tokopedia continues to review the effectiveness of their organization. "Any decision must have gone through consideration or taken into account the principle of prudence in managing a business," he wrote in his statement.

Merger between Tokopedia with TikTok Shop through a partnership with TikTok Nusantara (SG) Pte Ltd, owned by ByteDance, is part of a larger strategy to streamline operations E-commerce in Indonesia. The deal is valued at $15 billion and results in ByteDance holding a 75,01% stake in Tokopedia, while GOTO retains the other 24,99% stake.

This layoff step is part of ByteDance's efforts to reduce operational costs and increase efficiency after the merger. ByteDance follows in the footsteps of other large technology companies such as Alibaba and Tencent Holdings Ltd which have carried out massive layoffs in the last two years due to the economic slowdown.

Even though there is news that these layoffs could reach 70% of total employees, GOTO emphasized that up to now, there are no plans to terminate almost 80% of Tokopedia services. They emphasized that all strategic decisions are completely in the hands of PT Tokopedia management.

"There is no other important information/events that have not been or are not disclosed by the Company. "The company will always comply with all applicable relevant regulations and will provide information disclosure to the public no later than two working days after the material event occurs," concluded Koesoemohadiani in his official letter.

mass layoffs This shows the major challenges faced by large technology companies in Indonesia in managing costs and remaining competitive amidst difficult economic conditions. This decision also reflects a global trend where large technology companies are seeking to streamline their operations to maintain business sustainability in the future.

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Disclosure: This article was produced with AI technology and supervision of the content writer
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