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TikTok to lay off 450 employees in Tokopedia: Sources
The layoffs, which equal 9 percent of the workforce of major local e-commerce firm Tokopedia, are an effort to eliminate duplicate functions and cut costs.
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An employee packs goods at GoTo's e-commerce unit Tokopedia's warehouse in Jakarta on Aug. 31, 2022. (Reuters/Ajeng Dinar Ulfiana)
B
yteDance-owned social media app TikTok plans to cut by 450 employees the headcount at local e-commerce platform Tokopedia, which it acquired several months ago, Bloomberg reported on Wednesday, citing sources familiar with the matter.
According to the report, the layoffs would slash 9 percent of the workforce of the combined entity of TikTok’s e-commerce unit and PT Tokopedia, called Shop Tokopedia, which currently has around 5,000 employees. The reduction could take place as soon as this month, with the final number of affected employees still under discussion.
The cuts would impact staff across e-commerce teams, including advertising and operations, mainly to eliminate duplicate functions after the merger.
TikTok Indonesia did not immediately respond to The Jakarta Post’s requests for comment.
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In October last year, the government banned e-commerce sales on social media platforms, including TikTok’s e-commerce service TikTok Shop, arguing the move was aimed at protecting small businesses in the country.
TikTok later acquired a 75.01 percent stake in Tokopedia from PT GoTo Gojek Tokopedia for US$1.5 billion. After the deal, it combined Tokopedia with TikTok Shop to continue to serve merchants and customers in Indonesia, intensifying competition in the local e-commerce market with Sea Group’s Shopee and Alibaba-backed Lazada.
