GoTo’s the Largest Tech Company of Indonesia’s will let go of 600 more workers.

Indonesia’s largest tech company GoTo will let go of 600 more workers.

The largest tech company in Indonesia, PT Goto Gojek Tokopedia, announced more layoffs on Friday to streamline the business and increase profitability. With the elimination of 1,300 positions in late 2017, the corporation stated that 600 roles would be impacted.

According to GoTo Financial, its merchant company would be restructured. “One such change is consolidating certain businesses and teams across the ecosystem to build a more streamlined organisation better suited to adapt to market demands,” GoTo said.

With the elimination of 1,300 positions in late 2017, the corporation stated that 600 roles would be impacted.

 

One of Indonesia’s biggest digital firms, Go To, offers various services, including financial services, food delivery, and ride-hailing. Go To has had to deal with the difficulties posed by the COVID-19 pandemic, which has affected the economy and led many businesses to struggle, much like many other enterprises worldwide.

GoTo has implemented layoffs as one of its responses to the pandemic. A firm may terminate the employment of a group of people through a process called a layoff, usually to save money.

Layoffs can be challenging for the affected employees and the business because they can lead to financial hardship and harm the brand’s reputation.

In this article, we’ll examine the justifications behind Go To’s layoffs, their consequences on the workforce and the business, and the steps Go To has made to lessen their effects.

Explanations for GoTo’s layoffs

The COVID-19 pandemic’s effects on Go To’s business are the primary cause of the layoffs. Due to individuals staying at home to prevent the virus from spreading, the pandemic has significantly decreased demand for food delivery and ride-hailing services.

As a result, Go To saw a considerable decline in revenue and was forced to make cost-cutting decisions to continue operating.

Go To’s layoffs are part of a larger reorganisation initiative the business has launched to lower operating costs. The corporation has also instituted wage reductions and layoffs as part of this approach.

Impact on the workforce

The affected employees at Go To have significantly suffered due to the layoffs. In a competitive job market, many workers have lost jobs and are scrambling to find new employment. Financial difficulty and psychological stress may affect the impacted employees and their families.

Go To has tried to lessen the layoffs’ effects on its staff by providing severance compensation and assistance in finding new jobs. Also, the business has offered counselling services to assist staff in adjusting to the psychological effects of the layoffs.

Impact on the business

The business has felt both positive and harmful effects of the layoffs at Go To. On the one hand, the company’s financial position has improved due to the layoffs’ contribution to reducing operational expenses. This has enabled the business to carry on with operations and customer services.

Nonetheless, the layoffs have suffered the company’s reputation and morale. Go To has received bad press due to the releases, with some clients and investors condemning the business’s treatment of workers.

The brand of the company and its capacity to draw in and keep clients and staff may be negatively impacted in the long run by this.

Taking Steps to Reduce the Impact of Layoffs

Go To has taken several steps to lessen the impact of the layoffs on its staff and the business. These actions consist of the following:
1. Offering severance packages: Go To has provided the impacted employees with severance compensation, which can help to lessen the financial burden of losing their positions.

2. Assistance in locating new employment: Go To has offered affected employees aid in finding new work, including help with résumé writing and job search strategies.

3. Counseling services: Go to has made counselling services available to help employees deal with the psychological effects of the layoffs.

4. Open and honest communication with employees: Go To has been open and honest with its staff about the reasons behind the layoffs and the company’s steps to lessen their consequences.

5. Long-term planning: To safeguard the viability of its firm, Go To has created a long-term strategy that includes steps to cut expenses and boost productivity.

GoTo has announced numerous additional waves of layoffs since the initial round in May 2020, in addition to that one. Many reasons, including adjustments to the company’s strategy and the pandemic’s effects on its operations, have been given as justifications for these layoffs.

GoTo announced in January 2021 that it would terminate 430 people, or around 9% of its workforce, as part of a larger reorganisation initiative. The company’s non-core operations, including its events and advertising units, which the epidemic had particularly heavily impacted, were the main targets of the layoffs.

The business also disclosed that senior management would get salary reductions and some staff would be on leave.

GoTo announced additional layoffs in September 2021, affecting 150 people, or less than 1% of its workforce. The company’s operations were being streamlined as part of a larger initiative to concentrate on its core activities.

GoTo’s co-CEOs stressed that the business was dedicated to helping its employees through this trying period and would be offering them financial aid and counselling services.

Employees at GoTo and the general public have reacted differently to the layoffs. The business has come under fire from some for how it handled the releases and for not doing enough to assist its staff during this trying period.

Others have applauded the business’s initiatives to adjust to the shifting market conditions and its dedication to long-term sustainability.

In general, GoTo’s layoffs reflect the difficulties many businesses face in Indonesia and around the world as they deal with the COVID-19 pandemic’s effects on their operations.

GoTo has stressed its commitment to supporting its employees through this trying time and modifying its business to the changing market conditions, even if the layoffs have been brutal for the impacted employees and their families.

edited and proofread by nikita sharma