The GoTo logo appears on the smartphone screen and in the background.
Rafael Henrique | Soba photos | Light Rocket | Getty Images
Indonesian tech giant GoTo Group announced Friday that it will lay off 1,300 people, or about 12% of its total staff.
GoTo is the combined entity of ride-hailing company Gojek and online marketplace Tokopedia.
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The company announced Friday that “the reduction in staffing levels will unfortunately affect 1,300 people or approximately 12% of employees across the GoTo group.”
Previous reports by local and foreign media said that GoTo, which went public on the Indonesia Stock Exchange in April 2022, was planning to cut 10% of its total workforce amid economic headwinds.
“Given the challenging global macroeconomic conditions that have a significant impact on companies around the world, the company, like other prudent companies, is making adjustments to ensure it can navigate the uncertain path that lies ahead,” the statement said.
GoTo said it should “accelerate its progress toward becoming a truly sustainable and financially independent company, focused on its core offering of on-demand e-commerce and financial technology services.”
In its quarterly earnings announcements this week, Sea Limited cited macro uncertainties such as rising interest rates and global inflation rates affecting its business, and Grab said it was monitoring macro uncertainties and had begun to cut costs.
GoTo’s retrenchment follows local media reports that Sea Limited has laid off more than 7,000 employees, or about 10% of its workforce, over the past six months.
GoTo to join other companies based in Southeast Asia that have laid off workers this year.
They include Foodpanda, Carsome, and Propzy, which confirmed to the media that they pulled some workers this year. Propzy said it has laid off up to 50% of its employees.
By the end of the second quarter, nearly 800 billion [Indonesian rupiah] In terms of structural cost, savings have been achieved in areas such as technology, marketing and outsourcing.” This equates to about $50.9 billion.
“However, to navigate further in the midst of increasingly challenging global economic conditions, the company must focus on matters within the company’s control.”
The cost-cutting plan will not be detrimental to the company’s business continuity, and “constitutes a strategic effort to ensure it continues to make a positive impact for the millions of consumers, drivers, and merchants within the GoTo ecosystem through healthy and sustainable growth.”
GoTo shares were trading at IDR 220 a piece, up 2.8% on Friday. The stock is down 42.4% year-to-date.
GoTo is scheduled to report its earnings for the third quarter of 2022 on Monday.