This is the severance pay GoTo gives to employees who have been laid off

Jakarta, CNBC Indonesia – PT GoTo technology broadcaster Gojek Tokopedia Tbk (GOTO) made the difficult decision to downsize 1,300 employees or about 12% of its total permanent employees.

GoTo Group CEO Andre Soelistyo said this step was a form of business adaptation to ensure the company’s readiness to meet future challenges. To further navigate the midst of increasingly challenging global economic conditions, GoTo needs to focus on things that are within the company’s control.

“This includes making the difficult decision to downsize 1,300 employees or about 12 percent of GoTo Group’s total permanent employees,” he said in a written statement to CNBC Indonesia on Friday (11/18/2022).

Part of the company’s support for affected employees includes everything from severance pay to consulting services.

“We are committed to providing comprehensive support during the transition period because they have worked hard and made a great contribution to the company,” he said.

Affected employees will receive a compensation package in accordance with the laws and regulations of each country in which GoTo operates.

In addition to this, GoTo also provides a variety of financial supports, including in the form of an additional month’s salary, as well as an allowance in lieu of the notice period (substitute notice). The smallest settlement is 2 times the salary for those who have not worked for a year. While the largest severance pay is 14 times salary.

Not only that, GoTo also provides job search support and counseling services. Affected employees are entitled to own the laptop they are currently using, access various training programs, and be able to enroll in GoTo’s alumni directory, where the company can provide recommendations to various companies in the GoTo business partner network. GoTo group.

“In addition, the career, financial and psychological counseling facilities will be available until the end of May 2023,” he said.

Previously, PT Macquarie Sekuritas Indonesia’s research also assessed that GOTO is currently able to offer better monetization and efficiency. In Q2 2022, GoTo’s Gross Transaction Value (GTV) was IDR 151 trillion, up 39% year over year and surpassing management and revenue guidance of IDR 5.5 trillion, in up 45% year over year and growing higher than GTV.

“For the third quarter, GTV’s targets and their gross revenues of IDR 151-156 trillion and IDR 5.7-6 trillion respectively look reasonable,” wrote analysts Ari Jahja and Akshay Sugandi, two analysts at Macquarie, in a research as of September 2022.

[Gambas:Video CNBC]