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🇮🇩 Indonesia /Economy & Trade

GoTo responds to reports of Tokopedia layoffs, expects limited impact

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • GoTo confirmed that it respects Tokopedia's organizational adjustments, including potential layoffs, following TikTok's acquisition.
  • GoTo's financial and non-financial impact from Tokopedia's actions will be limited due to its reduced ownership stake (24.99%) since January 2024.
  • The company does not anticipate material impacts on its share of profit/loss or e-commerce service fees from Tokopedia and has no immediate plans regarding its investment.

PT GoTo Gojek Tokopedia Tbk (GOTO) has responded to widespread reports of significant layoffs at PT Tokopedia, following its acquisition by TikTok. GoTo's Corporate Secretary, R A Koesoemohadiani, stated that the company respects the decisions made by Tokopedia's management regarding organizational adjustments.

We respect every step taken or that will be taken by PT Tokopedia's management in relation to the organizational adjustment plan.

— R A KoesoemohadianiGoTo's Corporate Secretary stated the company's position on Tokopedia's reported layoffs.

Koesoemohadiani emphasized that any impact on GoTo's financial or non-financial aspects will be limited. This is primarily because GoTo's ownership in Tokopedia was diluted to 24.99% in January 2024, meaning Tokopedia is no longer consolidated in GoTo's financial statements. GoTo now accounts for its investment using the equity method, as per accounting standards for investments in associates and joint ventures.

Given that in January 2024, the company's ownership was diluted to 24.99 percent, the company no longer consolidates PT Tokopedia.

— R A KoesoemohadianiGoTo's Corporate Secretary explained the reason for the limited financial impact of Tokopedia's actions.

Consequently, any financial repercussions for GoTo are expected to be confined to its share of profit or loss from the associate entity. GoTo estimates no material impact on this share, nor on the e-commerce service fees it receives from Tokopedia. The company also foresees no material non-financial consequences.

However, in relation to what has been explained above, especially regarding the news about PT Tokopedia's organizational adjustment plan, based on the company's estimation, there is no material impact on the company's share of PT Tokopedia's net profit/loss.

— R A KoesoemohadianiGoTo's Corporate Secretary provided an estimate of the financial impact on GoTo from Tokopedia's restructuring.

Given the limited anticipated impact, GoTo does not plan any specific actions in response. The company also stated that it has no near-term plans concerning its ownership stake in PT Tokopedia. The reports of Tokopedia laying off 90% of its employees emerged on social media, though no official confirmation from the involved parties had been released at the time of reporting.

Until the date of this letter, GoTo has no plans in the near future related to its ownership in PT Tokopedia.

— R A KoesoemohadianiGoTo's Corporate Secretary addressed the company's future intentions regarding its investment in Tokopedia.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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