Reasons For GoTo's LAYOFFS 1,300 Employees: Companies Need To Adapt To Face The Challenges In The Future

Illustration (Photo: Doc. Antara)

JAKARTA - PT GoTo Gojek Tokopedia Tbk has officially terminated employment (PHK) to 1,300 people or 12 percent of its employees.

Through its official statement, GoTo management confirmed this. Management argued that global macroeconomic challenges had a significant impact on business actors around the world.

"GoTo, like any other big company, needs to adapt to ensure the Company's readiness to face future challenges," the management wrote in an official statement, Friday, November 18.

For this reason, GoTo continued, to support the acceleration of growth, since the beginning of the year GoTo has also evaluated the optimization of the cost burden as a whole, including aligning operational activities, integrating the work process, and renegotiating various cooperation contracts.

At the end of the second quarter of 2022, the Company managed to save structural costs of IDR 800 billion from various aspects of savings, such as technology, marketing and outsourcing.

"However, to further navigate in the midst of increasingly challenging global economic conditions, GoTo must focus on things that are under company control. This includes making difficult decisions to streamline employees by 1,300 people or about 12 percent of the total GoTo Group permanent employees," GoTo continued.

According to management, this difficult decision is unavoidable so that the company is more agile and able to maintain growth rates so that it continues to have a positive impact on millions of consumers, driver-partners, and traders.

GoTo also stated that it would provide compensation to affected employees in accordance with the regulations and laws in each sector where GoTo operates.

"More than that, GoTo also provides a number of financial support, including an additional one month's salary, as well as compensation for the notification period," continued management.

Not only that, but GoTo also stated that it would provide job support and counseling services.

Affected employees are also entitled to own laptops that they currently use, access various training programs, and can join the GoTo alumni library, where the Company can provide recommendations to various companies on the GoTo Group's business partner network.

"Furthermore, career, financial, and psychological counseling facilities will be available until the end of May 2023," concluded management.