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GoTo Returns Layoffs of 600 Employees

CNN Indonesia

Friday, 10 Mar 2023 15:55 WIB





PT Goto Gojek Tokopedia Tbk (GoTo) again terminated employment (PHK) for 600 employees in its business ecosystem. Illustration. (BETWEEN PHOTOS/Aditya Pradana Putra).

Jakarta, CNN Indonesia

PT Goto Gojek Tokopedia Tbk (GoTo) returns to terminate employment (layoffs) to 600 employees in its business ecosystem.

Spokesperson for GoTo Koesoemohadiani said this decision was part of a strategy update to build a sustainable company.

“Unfortunately, these adjustment steps will affect around 600 positions in the GoTo ecosystem,” he said in a written statement, Friday (10/3).

However, he ensured that every affected worker would receive support from the company during the transition period. This support includes financial, career, and welfare support.

In addition, Koesoemohadiani ensures that management’s decision to strengthen the company’s operations by laying off hundreds of employees will not have an impact on future performance.

“This adjustment step will not affect the services provided by GoTo to consumers, driver-partners and merchants,” he explained.

One of the business adjustments the company is making is consolidating multiple businesses and teams in an ecosystem to make the organization more streamlined and ready to respond to market demands.

For example, we redesigned the offline merchant business at GoTo Financial and brought together two offline merchant teams. Adjustments like these will help us provide better service to merchants, while reducing costs,” he said.

The company is also reviewing priorities, and will scale down or postpone business activities and initiatives that are not core services.

“For example, we will reduce some parts of Mitra Tokopedia’s services, so that the company’s resources can be focused on activities that will drive a greater impact. And in conditions where recruitment needs are decreasing, we are also restructuring the recruitment team,” he explained.

Last November, GoTo also laid off as many as 12 percent or as many as 1,300 of its employees.

“The company must make a difficult decision to downsizing employees which will affect 1,300 people or around 12 percent of the total permanent employees of the GoTo group,” wrote an official statement in the information disclosure on the Indonesia Stock Exchange (IDX), Friday (11/18).

As of 30 June 2022, GoTo was recorded as having 9,630 employees, an increase from the position of 31 December 2021 of 9,044 people.

(ldy/sfr)


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