Gojek’s parent company (GoTo) announced it had just laid off 1,300 employees, or 12% of its workforce. Before GoTo, a series of large technology companies also laid off employees such as Amazon, Meta, and Twitter.
“Challenging global macroeconomic conditions are having a significant impact on businesses worldwide. GoTo, like other cautious companies, is making adjustments to ensure it can outperform through the uncertain future ahead” GoTo said in a statement.
GoTo says it saved about 800 billion rupiah ($51 million) in the first half of this year through efficiency measures in technology, marketing and outsourcing.
“However, we have determined that further measures must be taken to ensure the company can overcome the challenges ahead” GoTo explained about the mass layoffs.
GoTo, an Indonesian tech unicorn and financial services provider, went public in April with a $1.1 billion stock sale. The company is backed by SoftBank Group Corp (Japan), Alibaba Group (China) and Singapore’s sovereign wealth fund.
GoTo shares are trading 44% below their initial public offering price, as investor sentiment towards the tech sector worsens amid soaring inflation and interest rates.
GoTo reported in August that the company’s half-year net loss more than doubled, to nearly $1 billion.