GoTo Announces Reductions Of Its Employees By 12%, Company’s Shares Surge 2.8%

GoTo Announces Reductions Of Its Employees By 12%, Company’s Shares Surge 2.8%

GoTo Group made an announcement on Friday about laying off their employees. The company revealed that they are planning to lay off 12% of their total headcount, accounting for 1,300 people.

GoTo to lay off Employees

The Indonesian tech giant reportedly confirmed that it has decided to lay off 1,300 of its total employees, which would be 12% of its total headcount.

The company is a merged entity of Tokopedia, an online marketplace, and Gojek, a ride-hailing company.

On Friday, the officials posted an update about the company’s decision to staff level reductions. It was mentioned that the company is sad that it had to make such a decision but it had no other option.

The reduction will be carried out throughout the GoTo group and will not be targeted toward a particular facility.

Previous Claims

The reports had already started emerging about the company’s decision even before it was made public. The local media was reporting that the company had been planning to lay off around 10% of its workforce.

GoTo made a public debut in the month of April 2022 and it did it on the Indonesia Stock Exchange.

As per the company executives, they have been facing economic headwinds. Their business has not been doing well due to the market decline and the growing inflation rates.

The global macroeconomic conditions are proving to be very challenging for their company. Due to that their business has been facing a constant decline.

It is, therefore, facing the same situation as other companies from around the world. However, the officials have stated that the market turmoil will not be able to pin their company for a long time.

They have assured the investors and other stakeholders that the company is going to come out of the downtrend and perform well in the future.

They will be able to navigate through difficult times and clear out all the uncertainties the stakeholders are facing with the company.

They are aiming to accelerate their business’s progress and want to make it as financially sustainable as possible. Their goal is to make their business independent and want to increase their services for the users.

They are also working hard to offer their services in financial technology, e-commerce, and on-demand services.

GoTo is following other Companies

GoTo is not the only firm that has taken the step of laying off employees. Companies such as Sea Limited, Propzy, Casome, and Foodpanda have also taken the same measurements.

Sea Limited had to lay off over 7,000 workers, which accounts for 10% of their overall employees. The company has laid off these many employees over the period of just six months.

After announcing the layoff, GoTo’s share prices experienced a 2.8% surge in the latest trading session. Despite the surge, GoTo’s shares are down 42.4% from year to date.