Gojek next regional tech giant to lay off staff amid pandemic

Indonesian ride-hailing, delivery and e-commerce firm Gojek said on June 23 that it will lay off nine per cent of its company-wide staff, which would translate into 430 employees being made redundant as the Covid-19 pandemic has battered demand for its lifestyle services.

The job cuts follow a similar move by Grab, which recently said it will let go five per cent of staff, or around 360 people.

Gojek already announced that it would close down its lifestyle division GoLife, which includes massage and cleaning services, as well as its food court division GoFood Festival, as both saw “significant decrease in demand” during the pandemic, according to a press statement by the company.

Gojek, Indonesia’s largest startup which also operates in Vietnam, Thailand, Singapore, Philippines, Malaysia and India, said it will focus on its core business, namely its ride-hailing service, food delivery and e-payment solutions, and downsize its overall structure as part of the company’s long-term plan to adapt to the pandemic.

Particularly, the company plans to develop its logistics service, which grew by 80 per cent, as well as its online grocery sector, which had doubled its transactions since the beginning of the Covid-19 outbreak.

Pandemic “forever changes the way we operate our business”: Gojek CEOs

“The biggest challenge is the remaining uncertainties in the future, and the hurtful fact is that this will forever change the way we operate our business and the products we offer,” Goyek’s Co-CEOs Andre Soelistyo and Kevin Aluwi said in the statement.

“We have to respond to what’s out there and increase our focus to build a strong, more efficient business to survive,” they added.

The CEOs said this would be the only employee reduction Gojek would make amid the pandemic, and the laid-off employees would receive severance pay, an equity arrangement and an outplacement programme.

As a relief measure, Gojek managers pledged to funnel 25 per cent of their salaries over the next year into a fund designed to support drivers, merchants and partners. The budget assigned for annual employee salary increases was also redirected, producing a total pool of roughly $6 million.



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Indonesian ride-hailing, delivery and e-commerce firm Gojek said on June 23 that it will lay off nine per cent of its company-wide staff, which would translate into 430 employees being made redundant as the Covid-19 pandemic has battered demand for its lifestyle services. The job cuts follow a similar move by Grab, which recently said it will let go five per cent of staff, or around 360 people. Gojek already announced that it would close down its lifestyle division GoLife, which includes massage and cleaning services, as well as its food court division GoFood Festival, as both saw “significant decrease...

Indonesian ride-hailing, delivery and e-commerce firm Gojek said on June 23 that it will lay off nine per cent of its company-wide staff, which would translate into 430 employees being made redundant as the Covid-19 pandemic has battered demand for its lifestyle services.

The job cuts follow a similar move by Grab, which recently said it will let go five per cent of staff, or around 360 people.

Gojek already announced that it would close down its lifestyle division GoLife, which includes massage and cleaning services, as well as its food court division GoFood Festival, as both saw “significant decrease in demand” during the pandemic, according to a press statement by the company.

Gojek, Indonesia’s largest startup which also operates in Vietnam, Thailand, Singapore, Philippines, Malaysia and India, said it will focus on its core business, namely its ride-hailing service, food delivery and e-payment solutions, and downsize its overall structure as part of the company’s long-term plan to adapt to the pandemic.

Particularly, the company plans to develop its logistics service, which grew by 80 per cent, as well as its online grocery sector, which had doubled its transactions since the beginning of the Covid-19 outbreak.

Pandemic “forever changes the way we operate our business”: Gojek CEOs

“The biggest challenge is the remaining uncertainties in the future, and the hurtful fact is that this will forever change the way we operate our business and the products we offer,” Goyek’s Co-CEOs Andre Soelistyo and Kevin Aluwi said in the statement.

“We have to respond to what’s out there and increase our focus to build a strong, more efficient business to survive,” they added.

The CEOs said this would be the only employee reduction Gojek would make amid the pandemic, and the laid-off employees would receive severance pay, an equity arrangement and an outplacement programme.

As a relief measure, Gojek managers pledged to funnel 25 per cent of their salaries over the next year into a fund designed to support drivers, merchants and partners. The budget assigned for annual employee salary increases was also redirected, producing a total pool of roughly $6 million.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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