Hit By A Storm Of Layoffs, Shopee Makes Sure Not Disturb Online Shopping Services

JAKARTA - The storm for the fulfillment of employment (PHK) in the startup sector is not over yet. Now it's Shopee Indonesia's turn to reportedly cut the number of employees. However, Shopee ensures that the reduction in the number of insufficient employees will have an impact on business operations and online shopping services.

Shopee Indonesia Head of Public Affairs Radynal Nataprawira said Shopee Indonesia's decision to release a number of employees was part of the efficiency measures taken by the company.

Radynal explained that this decision was the last step that had to be taken, after making adjustments through several business policy changes.

"With a heavy heart, Shopee Indonesia must release a number of its employees. This decision is the last step," he said, quoted Monday, September 19.

Global satuasai such as the war between Russia and Ukraine which did not stop, the pressure of inflation and the emergence of a risk of remission, and the uncertainty of the 2023 situation made Shopee Indonesia have to take steps to make efficiency.

"The global economic condition requires us to adapt more quickly and evaluate business priorities so that they can become more efficient. This is a very difficult decision," he said.

Radynal said, efficiency measures are in line with the company's global focus on achieving independence and sustainability, which are two important components in running a business amid the current global economic uncertainty.

"The company will focus on independent and sustainable business growth, and we want to strengthen and ensure our company's operations are stable in the current economic situation," he said.

Radynal emphasized that Shopee Indonesia ensures that this step will not affect business and service operations to all sellers, buyers and partners in Indonesia.

In addition, Shopee is also committed to continuing to serve millions of buyers and sellers including MSMEs and local entrepreneurs in 514 cities and regencies throughout Indonesia, the presence of Shopee has provided opportunities for many business actors to grow.

Shopee Indonesia juga tetap berkomitmen untuk terus menjalankan program bagi UMKM yang telah berjalan saat ini, melalui sembilan Campus UMKM Shopee yang ada saat ini.

"We will continue our mission to serve millions of sellers, buyers and MSMEs to enjoy the benefits of the digital economy through our platform," he said.

Dismissal of Three Employee Percents

Radynal did not mention the number of Shopee Indonesia employees who were laid off. However, a VOI source said the layoffs were experienced by 3 percent of the total Shopee employees.

However, Radynal said thatShopee is committed to providing support for employees affected by this policy.

"This process will be carried out based on government regulations. The affected employees will receive severance pay in accordance with the provisions of the legislation with an additional 1 month of salary," he said.

In addition, said Radynal, affected employees can still use the company's health insurance facility until the end of the year with all the benefits.