Tokopedia has laid off around 420 employees over the past two months, according to a source.

About 240 staff were let go in August, after 180 layoffs in July.

The cuts reportedly affected several divisions, including IT, customer care, fulfillment, and warehouse teams.

🔗 Source: CNBC Indonesia

🧠 Food for thought

1️⃣ Post-merger layoffs often happen in waves rather than single cuts

Tokopedia’s recent job cuts represent the continuation of layoffs that began shortly after its merger with TikTok was completed in January 2024.

The company laid off 450 employees in June 2024, and now an additional 420 employees have been cut in July and August, indicating that post-merger integration is an extended process rather than a one-time restructuring event21.

This pattern reflects the complex reality of combining two large organizations where role redundancies become apparent gradually as teams are integrated.

The layoffs have consistently targeted similar areas across both waves, including IT, customer care, fulfillment operations, and warehouse functions, suggesting these divisions had the most overlap between the two companies13.

TikTok’s controlling 75% stake in the merged entity and $1.5 billion investment commitment demonstrates the scale of integration required, explaining why workforce adjustments are happening over multiple quarters rather than immediately3.

2️⃣ Heavy investor dependence can limit operational flexibility during downturns

Labor observer Tadjudin Nur Effendi directly attributed Tokopedia’s layoffs to the company’s heavy reliance on external investors, which constrains management’s ability to implement internal restructuring alternatives2.

This dependency becomes particularly problematic during economic uncertainty, as investor demands for efficiency often override other strategic considerations like talent retention or market positioning.

The timing of these layoffs coincides with what analysts call a “tech winter,” where rising capital costs and increased investor caution are forcing companies across the sector to prioritize short-term cost reduction43.

Recent Tokopedia developments