GoTo Responds to Tokopedia Layoff Reports, Cites Limited Impact

GoTo Gojek Tokopedia has acknowledged reports of significant layoffs at its former subsidiary, PT Tokopedia, stating it respects the e-commerce company's management decisions regarding organizational restructuring. The tech giant anticipates only a limited impact on its financial and non-financial performance, largely due to its reduced ownership stake.

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We respect every decision taken or to be taken by the e-commerce company's management as part of its organizational restructuring plan.

In a disclosure to the Indonesia Stock Exchange, GoTo Corporate Secretary R. A. Koesoemohadiani explained that since January 2024, GoTo's ownership in Tokopedia has been diluted to 24.99 percent. Consequently, GoTo no longer consolidates Tokopedia's financials and accounts for its investment using the equity method. This shift means any financial effects on GoTo are confined to its share of Tokopedia's net profit or loss, which the company estimates will not be material.

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

Koesoemohadiani further clarified that GoTo does not foresee any material impact on the e-commerce service fees it receives from Tokopedia, nor on its non-financial aspects. Given these limited expected consequences, GoTo has no immediate plans to take specific actions regarding its ownership in Tokopedia. The company's statement comes amid unconfirmed social media claims that Tokopedia, now controlled by TikTok, might have laid off as many as 90 percent of its employees.

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Nevertheless, in relation to the above, specifically regarding the news about the organizational adjustment plan by PT Tokopedia, based on the company's estimation, there will be no material impact on the company's share of PT Tokopedia's net profit/loss.