Dear reader,
The planned job cuts at ByteDance in Indonesia highlight the turbulent landscape of the tech industry, driven by the recent US$1.5 billion merger between TikTok Shop and Tokopedia. This strategic consolidation, aimed at eliminating redundant roles, mirrors broader trends across the sector as companies grapple with economic challenges.
Approximately 450 jobs, or 9 per cent of the staff, predominantly in advertising and operations, are at risk, reflecting ByteDance’s focus on streamlining operations.
Indonesia has been a significant market for TikTok Shop, competing fiercely with Shopee and Lazada. The merger with Tokopedia was essential for ByteDance to navigate local regulatory landscapes. However, this consolidation brings about tough decisions, including workforce reductions, a move indicative of the pressures faced by large tech firms globally.
The GoTo Group’s response to the Indonesia Stock Exchange underscores its non-controlling minority shareholder status, emphasising that operational decisions rest with Tokopedia’s management. This statement follows the departure of Tokopedia’s founding CEO and longtime COO from GoTo’s board of commissioners, signalling potential strategic shifts.
Overall, the layoffs reflect the broader economic downturn affecting major Chinese tech companies, compelling them to restructure and optimise efficiencies amidst a challenging global market.
Sainul,
Editor.
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NEWS
ByteDance to lay off 450 employees in Indonesia
This decision will mainly affect the advertising and operations teams, with ByteDance aiming to eliminate duplicate roles following the TikTok Shop and Tokopedia merger. In total, ByteDance’s combined e-commerce team in Indonesia is around 5,000-strong.
GoTo stays mum on ByteDance’s layoff plans as former chiefs leave board
Bloomberg reported on Wednesday that ByteDance’s planned job cuts may affect about 450 of the firm’s 5,000-strong team in Indonesia – or about 9%; Local media reports, however, indicated that ByteDance might slash up to 70% of Tokopedia’s workforce.
Anchanto grows revenue by 39% in 2023, aims for full-year profits by 2026
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The post Ecosystem Roundup: ByteDance to cut 450 jobs in Indonesia | OpenAI closes in on US$3.4B in annualised revenue | BayaniPay adds US$9.6M to Series A appeared first on e27.