Bukalapak confirms laying off less than 5% of employees (update)

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Bukalapak is laying off less than 5% of its employees across several divisions starting this month.

A number of affected staff, including those from customer service, its Mitra business, and the product and engineering team, previously confirmed the retrenchment with Tech in Asia. 

In a statement, the Indonesian ecommerce firm said that it has “continuously evaluated our performance” to meet customers’ needs and optimize operations.

“We acknowledge that some changes will be more challenging than others, but we are confident that it is necessary to ensure our business’ long-term sustainability,” the statement reads.

All affected employees will receive severance pay in accordance with applicable regulations.

In the second quarter of this year, Bulakapak generated a net profit of US$40.7 million, a turnaround from a net loss of US$394.8 million in the same period last year. It also posted a 30% year-on-year increase in revenue for the quarter.

Bukalapak’s most recent round of layoffs occurred in 2019, when it cut hundreds of employees as a result of strategic adjustments and efficiency improvements.

See also: Bukalapak seizes ‘great opportunity’ in Mitra as rivals like GoTo exit

Update (August 11, 5:17 p.m. SGT): This article was updated to include the latest statement from Bukalapak.