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ByteDance is laying off workers at its Indonesian e-commerce unit

Posted on by darion

ByteDance did not confirm the number of employees affected by layoffs. Source: Jonathan Raa/NurPhoto via Getty Images.

Chinese company ByteDance will lay off workers at its Indonesian unit after acquiring local e-commerce company Tokopedia, Reuters reported.

The TikTok creator bought a majority stake in Tokopedia from the GoTo group in January to combine it with the TikTok store operations.

ByteDance did not confirm the number of employees affected by layoffs at its e-commerce unit. Bloomberg We previously reported that the company would cut approximately 450 jobs.

The company said it would make “necessary adjustments” following the merger between TikTok and Tokopedia.

“We have identified areas where we can strengthen our organization and better align our teams with company goals,” a company spokesman said.

The move comes after the Indonesian government forced the social media platform to shut down its e-commerce service TikTok Shop in the country.

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Indonesia banned online shopping on social media platforms last September over concerns about user data and the loss of smaller sellers.

The e-commerce market in Indonesia continues to grow at a rapid pace. According to Indonesia’s central bank, e-commerce sales in the country are expected to reach $44 billion in 2024.

Despite the projected increase in e-commerce sales, the value of e-commerce transactions in the country reached its highest level in 2021, according to the GlobalData transaction database.

In 2021, the value of e-commerce transactions in Indonesia reached USD 15.5 billion, significantly higher than the previous year’s USD 3.2 billion.

So far in 2023, the value of e-commerce transactions has increased even less than in 2020 and totaled PLN 2.8 billion.

According to GlobalData forecasts, the global e-commerce market has grown from $2.5 trillion in 2016 to $5.9 trillion in 2022, at a compound annual growth rate of 15%.

GlobalData expects the e-commerce market to be worth $9.3 trillion by 2027.