Indonesia – TikTok Shop, the e-commerce arm of ByteDance Ltd., is cutting several hundred jobs in Indonesia as part of a restructuring effort following its acquisition of Tokopedia’s operations from local tech group GoTo.
According to a report from Bloomberg, which cited sources familiar with the matter, the layoffs affect staff across multiple departments, including logistics, operations, marketing, and warehousing. Additional reductions are expected as early as July, the report said. After the cuts, TikTok Shop and Tokopedia are estimated to have a combined workforce of about 2,500 in Indonesia.
A TikTok spokesperson said the company regularly evaluates its business structure to align with strategic goals, stating, “We continue to invest in Tokopedia and Indonesia as part of our strategy to drive sustainable growth and innovation.”
The move comes months after TikTok announced a US$1.5b investment in GoTo in December 2024, which followed prolonged discussions around the structure of the deal. At one point, sources had indicated the possibility of a joint venture. The transaction ultimately resulted in TikTok taking over operational control of Tokopedia.
At the time of the merger’s completion, the combined e-commerce entity reportedly had a workforce of around 5,000 employees in Indonesia.
Meanwhile, Indonesia’s antitrust agency has raised concerns over potential market dominance following the acquisition. As reported by Reuters, the regulator noted an increase in market concentration and flagged possible post-merger risks, including higher prices and reduced competition.
The agency has imposed several conditions on TikTok and Tokopedia, such as maintaining open access for payment and logistics providers and avoiding practices like self-preferencing and predatory pricing. TikTok declined to comment on the antitrust review, while Tokopedia did not respond to Reuters’ request for comment.
