ByteDance lays off workers at Indonesian e-commerce unit (Private:BDNCE)

Update: The story has been updated with ByteDance’s statement.

ByteDance (BDNCE) has confirmed that it will lay off some employees at its Indonesian e-commerce units, Tokopedia and ShopTokopedia.

The move comes after TikTok’s parent completed the deal it had committed to will invest over $1.5 billion in a joint venture with Indonesian e-commerce platform GoTo Tokopedia, which it will control.

The efforts were intended to help the Chinese company resume service of shopping app TikTok in the country. In February, GoTo CEO Patrick Walujo said GoTo and partner TikTok would fully comply within a month and a half with national regulations that prohibit in-app transactions on social media.

ByteDance did not disclose how many people would be affected. However, according to a Reuters report, Bloomberg had previously reported that 450 jobs would be cut.

“With the merger of TikTok and Tokopedia, we have identified areas where we can strengthen our organization and better align our teams with company goals. As a result, we will make necessary adjustments to our internal structure as part of our continued growth strategy,” a ByteDance spokesperson said in a statement emailed to Seeking Alpha.

The spokesman noted that the company’s goal is to support employees during the transition period.

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