Indonesian e-commerce firm Tokopedia has conducted its second round of layoffs this year, affecting 420 employees, according to local media reports.
Including the most recent cuts, an estimated 1,070 employees have been laid off since the Tokopedia–TikTok Shop merger was completed in January 2024.
A TikTok spokesperson told DealStreetAsia, “We regularly assess our business needs and make adjustments to strengthen our organisation and serve our customers better. We continue to invest in Tokopedia and Indonesia, as part of our strategy to drive sustainable growth and innovation.”
While the statement didn’t specifically confirm or deny the layoffs, it framed the move within a narrative of long-term commitment and operational enhancement.
According to a local report, the company has reduced approximately 420 employees over the past two months—180 in July and another 240 in August—affecting departments such as IT, customer service, warehousing, and fulfilment.
The first round of layoffs this year occurred in May, affecting 200 employees. Another internal source told DealStreetAsia that in 2024, approximately 450 employees were also impacted.
The reduction in employees may still happen, said the source.
There is no exact figure prior to the merger deal being completed. However, GoTo Group’s financial filings with the IDX showed its total headcount dropped from 7,522 employees in 2023 to 3.352 in 2024.
The restructuring has also triggered backlash among Tokopedia sellers, some of whom have publicly announced their departure via social media, expressing frustration with the forced migration to TikTok Shop.
In the last DealStreetAsia’s report, a Tokopedia seller described the platform integration as a “messy marriage,” highlighting the challenges of transitioning from Tokopedia to TikTok Shop.
The seller operates a home appliance and electronics distribution business and said that Tokopedia had long been its primary sales channel, where it had achieved official store status and Diamond 4 level—a coveted seller level.
While it had previously experimented with TikTok Shop over the past two years, the seller found it a poor fit for its product category. “TikTok users tend to be impulsive buyers, which doesn’t align with higher-value items like stoves, refrigerators, or air conditioners,” the seller said.
The seller expressed frustration at being forced into the migration, saying it felt like starting from scratch—the team has to learn TikTok’s new dashboard, which is “unintuitive”; and adapt to TikTok’s stricter policies, such as fees for pre-order items, restrictions on logos or text in product images, and character limits on product descriptions.
