Gudang Garam Layoffs Trigger Concerns for workers and Suppliers in Tuban, East Java
TUBAN, East Java โ – A โwidely circulated video depicting emotional farewells among โworkers at PT gudang โGaramโค Tbk’s cigarette factory in Tuban, East Java, hasโ sparked public concernโข over potentialโ mass layoffs. While PT Gudang Garam hasโฃ yet to issue an official statement confirming the job cuts, the situation raises fears not only for affected employeesโฃ but also for the livelihoods of local suppliers and property owners who rely on the โคfactory’s operations.
Theโค video,โ showing dozens of employees shaking hands โคin a visibly saddened atmosphere, quickly wentโข viral, prompting โquestions about the financial health of oneโ ofโข Indonesia’s largest cigarette manufacturers. The uncertainty comesโ as โPT Gudang โฃGaram’s financial โperformance for the fristโ semester of 2025 reveals a significant downturn,potentially driving the company to reduce it’s workforce โฃand impacting the broader regional economy.
According to the company’sโฃ financial statements, net profit plummeted 87.34 percent to โRp 117.16โ billion (approximately $7.3โค million USD) compared to Rp 925.5 billion in the same period last year. Revenue also decreasedโ by 11.4 percent to Rp 44.36 trillion (approximately $2.8 billion USD), while gross profit fell from Rp 5.06โ trillion toโ Rp 3.7 trillion.Operating profit experienced a dramatic drop to Rp โข513.7 billion from โRp 1,613 trillion.Theโค company also reported an exchange rate loss of Rp 1.7 billion,reversing a Rp โข39.3 billion profit from the previous year.
Theโค financial strain raises the โฃpossibility of widespread layoffs extending beyond direct employees. Local suppliers, who provide rawโ materials and packaging, and property ownersโ who lease landโ and buildings to the factory, are bracing for potential economicโ fallout. The โขextent of the impact on these stakeholders remains unclear pending officialโ confirmation fromโค PT Gudang Garam.As of Saturday, September 6, 2025, PT Gudang Garam Tbk has not publicly addressed the layoff reports.โ Kompas.com continues to seek clarification from the company and willโ provide updates as they become available.