JD.id, a joint venture of Chinese ecommerce major JD.com and Provident Capital, has officially laid off 30% of its staff or around 200 employees.
A JD.id offline store in Jakarta / Photo credit: JD.id
The decision was made as a response to “the challenges of the rapidly changing business lately,” the company’s spokesperson said in a statement to Tech in Asia.
The firm guarantees that affected employees will receive severance pay in accordance with Indonesia’s laws and regulations. In addition, the company will provide insurance benefits and what it refers to as “talent promoting,” meaning that it will help laid-off staff land roles in other companies.
See also: Can JD.com make a splash in SEA?
Previously, JD.com was reportedly looking to pull out of Indonesia and Thailand. Various media reports suggested that JD.com was looking for investors to buy out its shares in both countries after recording piling losses in those markets.
However, a JD.id spokesperson said that “there is no discussion about it [JD.com’s exit from Indonesia] so far.”
In Indonesia, JD.id has been mostly competing with ecommerce heavyweights such as Shopee, Tokopedia, and Lazada. According to data.ai, JD.id is lagging behind the three plus Blibli and Bukalapak in terms of monthly app downloads this year.
Editing by Thu Huong Le and Dhania Putri Sarahtika
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