Jakarta – Tech giant GoTo on Friday announced a plan to lay off 12 percent of employees affecting around 1,300 people in the company's efforts to boost efficiency and reach financial independence faster.
GoTo, a merger of ride-hailing Gojek and online marketplace Tokopedia, said in a statement that the current global macroeconomic challenges significantly impact businesses across the globe, and GoTo "like many other big companies, needs to adapt and ensure preparedness to cope with future challenges".
GoTo Group CEO Andre Soelistyo announced the plan during a town hall meeting in Jakarta.
The company will focus on its core businesses including e-commerce and financial technology where GoTo has been maintaining consistent growth.
Until the second quarter of the year, GoTo's efficiency measures saved the company around Rp 800 billion, it said.
"However, to navigate further under the increasingly challenging global economic condition, GoTo must focus on areas it can control, including a difficult decision to reduce the workforce by 1,300 employees or around 12 percent of GoTo's overall permanent employees," it said.
It added that the decision was "inevitable" to enable GoTo to stay agile and maintain growth for the benefit of millions of customers, partner drivers, and online traders.
The affected employees will be given notice shortly and the company is committed to providing "comprehensive support" in the transition period, according to the press statement.
They will receive compensatory packages in accordance with the law of the country where GoTo operates. GoTo also promised to help them get new employment.
"The decision will not affect GoTo's services to our customers and the company's commitment to partner drivers and traders," it said.