Heavy E-commerce Business Competition in Indonesia, JD.id Laid Off 200 Employees

JD.id, To do layoffs to 30% of their employees or around 200 employees. To DailySocial.id company representatives said that adaptation steps needed to be taken to respond to the challenges of rapid business change lately.

In June 2022, JD.id has also laid off dozens of employees they. The company said this was due to the company's HR restructuring which was carried out to maintain competitiveness.

Previously, there was also news about the poor performance of JD.id's business. To quote Deal Street Asia, JD has a plan exit from Indonesia and Thailand in Q1 2023 --- the company has yet to provide official confirmation regarding this rumor. Very tight competition in Southeast Asia with players e-commerce lother, became one of the reasons why JD finally decided to get out of the market.

Furthermore, JD.id is also committed to continuing to provide support to affected employees by continuing to provide insurance benefits and provide support in the form of: talent promoting, as well as other rights in accordance with the applicable laws and regulations.

From our monitoring, currently there are still several employees who are still working and waiting for news and clarification of their future position regarding the layoff decision.

Apply the O2O concept

Officially launched in Indonesia in 2016, PT Jingdong Indonesia Pertama (JD.id), a subsidiary E-commerce a joint venture from JD.com (China) has launched various strategic steps to target users in Indonesia. Starting from setting up a warehouse, pop up store, to virtual stores.

In 2020, JD.id also had a company valuation that exceeded $1 billion and held status unicorn. Previously in 2019, apart from officially announcing the acquisition of the first phase of series F funding, Gojek also announced the continuation of the strategic partnership with JD.com in Indonesia. It was stated that the realization of this cooperation was in the form of a joint venture on JD.id and J-Express (JX).

JD.id also has two outlets flagship for electronics (Electronic Store) and minimarket (JD HUB) spread across Jabodetabek. For the JD.id Electronic Store, there are five outlets that are already operating, with the newest location at AEON Mall Sentul City, Bogor. Meanwhile, JD HUB is now available in three locations, with the newest location at The Elements Apartment Kuningan, Jakarta.

Head of Offline Business JD.id Evyette Tung explained, JD.id entered the outlet offline combining O2O strategies aimed at increasing business sales offline through the presence of online platforms, as well as increasing business traffic offline through conversion to point pickup platform online.