Indonesia’s GoTo to cut 1,300 jobs to boost costs

Indonesia’s biggest technology company PT GoTo Gojek Tokopedia Tbk said on Friday (Nov 18) it is laying off 1,300 workers, or 12 percent of its workforce, joining a wave of tech firms cutting back after years of rapid hiring amid an uncertain economic outlook.

“Challenging global macroeconomic conditions are having a significant impact on businesses around the world, and GoTo, like other forward-thinking companies, is making adjustments to ensure it can navigate the uncertain path ahead,” it said in a statement.

GoTo said it saved about 800 billion rupees (US$51 million) in the first half of this year through technology, marketing and outsourcing efficiencies.

“However, the company has decided that additional measures are necessary to ensure that it is able to cope with future challenges,” the job cuts said.

Affected employees will receive at least one additional month’s pay in addition to what is required by law and full notice in lieu, GoTo said in a press release.

They will also be able to keep their laptops, access online learning resources and can be added to the GoTo alumni directory, through which employees will be referred to the GoTo business network.

Psychological, financial and career counseling will be provided to those who need it until May 2023.

GoTo, a ride-hailing and financial services company, went public in April in a $1.1 billion stock sale.

Its shares are trading 44 percent below their initial public offering price as investor sentiment in the technology sector sours amid soaring inflation and interest rates.

The company, which is backed by SoftBank Group, Alibaba Group and Singapore sovereign wealth fund GIC, is exploring a coordinated secondary offering of shares owned by pre-IPO shareholders after the November 30 lock-up period ends.

In August, it reported that its net loss had more than doubled to nearly US$1 billion in the six-month period.

In recent months, Southeast Asia’s largest e-commerce company Shopee has cut jobs in various countries and closed some overseas operations as Sea struggled with losses.

https://www.retailnews.asia/indonesias-goto-to-cut-1300-jobs-to-step-up-cost-cutting/?utm_source=rss&utm_medium=rss&utm_campaign=indonesias-goto-to-cut-1300-jobs-to-step-up-cost-cutting Indonesia’s GoTo to cut 1,300 jobs to boost costs

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