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As RI tech giants face axing spree, small startups regain funding momentum
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Up and down: The stock price of Indonesia’s decacorn PT GoTo Gojek Tokopedia Tbk (GOTO) is seen increasing on the monitor of Indonesia Stock Exchange (BEI) on April 12. Many startup companies across the world have been unable to perform, forcing them to lay off their employees en masse. (Antara/Handout/GoTo)
T
he layoff wave that has been sweeping through the Indonesian-tech landscape within the past two months is nothing surprising, experts say, as the situation is bound to happen across the globe, insinuating a similar trend recently happened among tech giants in Silicon Valley.
The so-called “tech winter” phenomenon recently involved several Indonesian household names such as Shopee, Xendit and TokoCrypto.
However, the most scrutiny arguably went to GoTo, one of Indonesian biggest tech firms that went public earlier this year who announced on Friday that it is cutting 1,300 people or 12 percent of its total workforce.
“This hard decision is inevitable for the company is looking become more agile and maintain the growth rate so it can keep giving positive impact for consumers, driver partners and sellers,” reads GoTo’s press statement.
The release said that this decision was partly caused by the global macroeconomic situation, albeit long-term sustainable business model was what it looked to forge.
“[GoTo] will keep on pushing a healthy business growth while, at the same time, practicing operational efficiency, so we can keep giving the best solution for the people,” GoTo chief of corporate affairs Nila Marita told the Post on Monday.
Yorlin Ng, chief operating officer of Momentum Works, a Singaporean venture outfit said that tech companies have had a good decade with an almost-zero interest rate which led the environment to be growth-focused without prioritizing efficiency.
