Indonesian tech titan GoTo Group is slashing 1,300 jobs – roughly 12% of its total workforce – amid the economic downturn.
Photo credit: GoTo Group
Employees affected by the measure will be given packages that include an additional month’s salary on top of statutory compensation. They will also retain access to online training resources and be given their work laptops, among others.
GoTo was formed via a merger deal between super app Gojek and ecommerce player Tokopedia. According to the combined entity’s LinkedIn page, it currently employs more than 10,000 employees.
“The magnitude of something like this is such that we felt it necessary to spend the time needed to make decisions thoughtfully and with care, to ensure that those affected are treated with dignity and respect,” Andre Soelistyo, GoTo’s group CEO, said in a letter to employees.
It was previously reported that GoTo would cull over 1,000 jobs as it reduces burn.
Over the past months, GoTo has also consolidated vendors and renegotiated contracts. According to the company, these cost-cutting measures will help it keep an additional US$51 million in its pockets by the end of the second quarter.
Below is Soelistyo’s letter in full.
See Also: How credit analysis can help Tokopedia score against ecommerce rivals
Editing by Eileen C. Ang
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