Indonesia's GoTo to cut 1,300 jobs to step up cost cutting
Indonesia's biggest tech firm PT GoTo Gojek Tokopedia Tbk said on Friday it was laying off 1,300 workers, or 12% of its workforce, joining a wave of technology firms retrenching after years of rapid hiring due to an uncertain economic outlook.
"Challenging global macroeconomic conditions are having a significant impact on businesses around the world and GoTo, like other prudent companies, is making adjustments to ensure it can navigate the uncertain road that lies ahead," it said in a statement.
GoTo said it has achieved around 800 billion rupiah ($51 million) in cost savings in the first half of this year through efficiency measures in technology, marketing and outsourcing.
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"However, the company has determined that further measures must be taken to ensure it is equipped to navigate the challenges ahead," it said about the job cuts.
GoTo, which offers ride-hailing and financial services, went public in April with a $1.1 billion stock sale.
Its shares are trading 44% below its initial public offering price, as investor sentiment on the tech sector sours amid soaring inflation and interest rates.
Shares in GoTo rose 2.8% on Friday after announcing the job cuts.
The company, backed by SoftBank Group Corp 9984.T, Alibaba Group 9988.HK and Singapore sovereign wealth fund GIC, is exploring a coordinated secondary offering of shares held by pre-IPO shareholders after a lock-up period ends on November 30.
It reported in August that its half-year net loss more than doubled to nearly $1 billion.
In recent months, Southeast Asia's largest-ecommerce firm Shopee cut jobs in various countries and shut some overseas operations as parent Sea SE.N struggle with losses.
($1 = 15,690.0000 rupiah)
