Facts about hurricane layoffs in 6 Indonesian companies

In two consecutive months at least six companies have terminated the employment relationship (layoffs). Firms that make layoffs, from startups to telecommunications companies.

Here are the facts

1. Six licensed companies

In September 2022, there were three companies doing this layoffs. The first company to do this was Shopee Indonesia. The company says this is done for business efficiency.

Nonetheless, Shopee is committed to providing support to employees affected by this policy. Severance indemnity will be paid according to laws and regulations plus 1 month’s salary.

Then, after a few days, Tokocrypto fired 45 people out of a total of 227 employees. This was revealed by Rieka Handayani, VP Corporate Communications of Tokocrypto.

Continuing the same month, Indosat Ooredoo Hutchinson (IOH) fired employees on Friday, September 23. It is unclear how many employees have been laid off, but what is clear is that Indosat says that almost all of the laid off employees receive the severance pay offered by the company.

The compensation package offered to employees is on average 37 times the salary, with the maximum of 75 times the salary, and is significantly higher than the requirements of the applicable law.

Three detikcom-listed companies also fired workers in October. First, the edutech startup Binar Academy announced the termination of employment (PHK) to 20% of employees. This decision was made by the company to prepare for future global economic uncertainty.

Then, via the official Instagram account @bananasindonesia, Bananas management communicated with a heavy heart that Bananas would stop operating because its business unit was deemed not to be functioning. This will automatically result in the dismissal of employees.

More recently, Grab will close the GrabKitchen service in Indonesia starting December 19, 2022. In this way, employee layoffs will automatically occur.

For GrabKitchen employees who eventually separate from Grab according to company regulations, in addition to compensation and compliance with regulatory obligations, additional support is provided.

2. Other sectors after layoffs next year

Economists predict that more companies will lay off workers, from the fashion industry to tourism. This is inevitable, moreover, global and domestic economic conditions are expected to decline.

“I think it will (he continues) because next year’s economy is expected to be lower than it is today for several sectors. First, for example, the garment industry, the textile industry and the clothing industry will be hit first. the apparel industry. So tourism won’t rebound. It’s still like that, “said on Monday (10/24/2022) the executive director of the Institute for Economic Development and Finance (INDEF), Tauhid Ahmad , at detikcom.

Meanwhile, other sectors are also expected to experience a decline in their activities, although the possibility of layoffs is reduced. “For example, the automotive sector will also decline, but this automotive sector is not fired, yes, it’s just the business. For others, the corporate sector whose target market could be the lower-middle class,” he continued.

What gets them fired, the answer is on the next page

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