Zenius layoffs show that winter isn’t coming – it’s already here

Sign up for the Daily Newsletter, sent exclusively to our Premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a Premium subscription.

Hello there,

A friend of mine wanted to buy an iPad Air last week, but they were all sold out. Yes, you read that correctly.

None of Singapore’s three Apple Stores had a single iPad Air. Well, you could order one online, but that would mean waiting for about a month.

According to a store employee, there were no available stocks due to bogged-down supply chains. And the reason for the delay? Lockdowns in China.

A couple of years ago, it was perhaps unimaginable to see this happening to Apple, a company synonymous with efficiency, attention to detail, and going the extra mile for customers. Sure, there have been delays before with products that were just launched, but not with those that have been out for months.

Then again, these are not normal times. With Covid-19 still upon us, and the ongoing war in Ukraine, I suppose there’s a limit to how many punches the global economy can take.

It’s inevitable that startups – of any vertical, in any region – will start feeling the aftershocks. When the Indonesian edtech startup Zenius became one of the first to announce layoffs, it cited “macroeconomic” reasons. The chatter on the ground is that it’s only a matter of time before others follow.

It’s a bad situation all around, but I appreciate the fact that Zenius is taking steps now rather than later. Most importantly, laid-off employees will be eligible for severance pay as set out by Indonesian law. (If you’ve ever worked or lived in Indonesia, you know how many companies try to cheat their way around this.)

— Putra Muskita, journalist at Tech in Asia

Top stories this week

Image credit: TImmy Loen

1️. Indonesia’s Zenius lays off 200+ employees
Two affected employees say that the edtech startup’s content team is particularly impacted.

2. The pitfalls of Vietnam’s GameFi sensation
Vietnam is a hotbed for GameFi, but there’s a flip side to it.

3. The key players in Southeast Asia’s quick commerce space
Quick deliveries are increasingly becoming the norm rather than the exception. But there are challenges.