Gojek Completes GoLife And GoFood Festival Services By Laying Off Its 430 Employees

Illustration of an online motorcycle taxi driver (Angga Nugraha / VOI)

JAKARTA - The news that the Gojek company will cut the number of employees is not a mere figment. As many as 430 people or 9 percent of the company's total employees will be dismissed (PHK) from Gojek management.

This announcement was made directly by Gojek's Co-CEOs, Kevin Aluwi and Andre Soelistyo in an e-mail message sent to all Gojek employees. According to Kevin, the decision to lay off his employees was due to the COVID-19 pandemic.

"We have taken various steps to optimize the company so that it can continue to grow. However, it turns out that we do not adequately anticipate an inevitable decline such as the current pandemic," Kevin wrote in his official statement, Tuesday, June 23.

Gojek was forced to close the GoLife business, which includes GoMassage and GoClean services, as well as GoFood Festival, which is a GoFood food court network in a number of locations. This decision was made based on an evaluation of the macroeconomic situation and changes in community activities.

Moreover, these two businesses, GoLife and GoFood Festival really need close interaction. Even so, Gojek still allows its users to use GoLife services for the last time until July 27.

"We are very grateful that you have made significant contributions to Gojek's success over the years. You have become a valuable part of Gojek's history and journey," continued Kevin.

Even though many employees had to be laid off, Gojek did not immediately escape their responsibilities. Similar to Grab, Gojek will also provide various supports including severance pay and health insurance until the end of 2020.

"We want to provide the maximum possible support, because financial sustainability is the biggest concern today," said Gojek's Co-CEO, Andre Soelistyo.

"Affected employees will receive severance pay, we set a minimum salary of 4 weeks plus an additional 4 weeks of salary for each year of work," continued Andre.

Gojek also allows employees to have office equipment that has been used to find business opportunities or other jobs. Other benefits that will also be received by affected Gojek employees, such as payment of annual leave and extension of health insurance for employees and their families until December 31, 2020.

The company will provide an outplacement program that will help everyone to find work. One of them is the COVID-19 Partner Solidarity program.

"This is in the form of a skills improvement program through online training which can be a long-term provision to earn additional income. In addition, Gojek will also provide a cash assistance program for active partners who meet the criteria," said Andre.