Hundreds ‘affected’ by Shopee’s team relocation in Indonesia

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Shopee is transferring its customer operations team from Jakarta to Solo and Yogyakarta – cities located around 500 kilometers from Indonesia’s capital. The move has “affected” hundreds of employees, according to the company.

Tech in Asia has learned that the final numbers are still uncertain as the relocation process is ongoing.

In a statement to Tech in Asia, Shopee said it has been preparing for the move over the past year. The company also mentioned that it had offered relocation options to eligible team members. Traveling on land from Jakarta to Solo and Yogyakarta could take seven to eight hours.

Those who refused to relocate will receive severance pay in accordance with Indonesian regulations and get additional support such as health insurance for the next three months, according to the company.

“This relocation decision was made after considering the readiness – from facilities to the development of talent and human resources – in these cities,” said Radynal Nataprawira, head of public affairs at Shopee Indonesia.

In late July, Shopee Indonesia said it had “thousands of employees” at its two offices in Solo.

This move follows a strong start to 2024 by Sea Group, Shopee’s parent company. In the first quarter of 2024, Sea’s overall revenue rose 23% from Q1 2023, while its adjusted EBITDA was down 21% year on year.

Shopee was a key driver of this growth, with its gross merchandise value increasing by 36% year on year to US$23.6 billion for the quarter.

In 2023, Shopee laid off 200 employees in Indonesia, primarily from the customer services team.

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