Reasons For Efficiency, GoTo Lays Off 600 Employees

JAKARTA - PT GoTo Gojek Tokopedia Tbk (GOTO) has terminated 600 employees.

Previously, at the end of last year GoTo had laid off 1300 employees.

GoTo Spokesperson Koesoemohadiani explained that this was done because GoTo was updating its business strategy in order to build a company that was sustainable, profitable, and could continue to have a long-term positive impact.

"These adjustment measures will unfortunately affect around 600 positions in the GoTo ecosystem," he said in an official statement to the media, Friday, March 10.

He explained that if 600 employees were affected, they would get support from the company during the transition period, where the support provided would be more than required by applicable laws and regulations and include financial support, careers, and welfare.

However, he ensured that this adjustment step would not affect the services provided by GoTo to consumers, driver-partners, and traders.

Koesoemoharani explained that one of the steps to update the business strategy was to redesign the offline merchant business at GoTo Financial and unite the two offline merchant teams.

"Adjustment like this will help us provide better services to merchants, while reducing costs," he added.

In addition, GoTo is also reviewing priorities and will reduce scale or delay business activities and initiatives that are not the core service.

"For example, we will reduce some parts of the Tokopedia Partner service, so that the company's resources can be focused on activities that will encourage a greater impact. And in conditions where recruitment needs decrease, we are also restructuring the recruitment team," he concluded.