TikTok Defends Mass Layoffs at Tokopedia as Part of Indonesia Strategy
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JAKARTA, Investortrust.id — TikTok has defended the dismissal of hundreds of Tokopedia employees, saying the move forms part of its business strategy in Indonesia. About 420 employees have been cut over the past two months.
A TikTok spokesperson said on Monday, Aug 25, 2025, that the company regularly evaluated its business needs and made adjustments to strengthen the organization while providing better service for users. “We continue to invest in Tokopedia and Indonesia as part of our strategy to drive sustainable growth and innovation,” the spokesperson said.
The workforce reduction unfolded in two waves. In July, more than 180 employees were dismissed, followed by another 240 in August. The layoffs hit multiple divisions, including information technology, customer service, fulfillment teams, and warehouse operations. The restructuring created unease among employees, with many concerned about long-term job security.
Sources familiar with the matter said the remaining technical staff were instructed to shift coordination to China, a sign that Tokopedia’s local role in technology was shrinking. The Indonesian teams were expected to concentrate more heavily on business and marketing functions.
The internal sources added that the layoffs would continue through the end of the year. The cuts were scheduled to conclude in tandem with the full integration of TikTok and Tokopedia’s systems, a process launched after TikTok’s acquisition of the e-commerce platform in late 2023.
The news quickly spread across social media, sparking widespread debate. Many internet users criticized the move, highlighting the vulnerability of digital industry workers as competition intensified.
Investortrust.id sought confirmation from Tokopedia regarding the exact number of affected employees, but the company had not provided an official response by the time of publication.
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