TikTok addresses Tokopedia layoff rumours, pledges continued investment in ID

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TikTok has responded to growing speculation over mass layoffs at Tokopedia, stating that organisational adjustments are part of routine evaluations but affirming its commitment to the Indonesian market.

Reports of around 420 job cuts at Tokopedia, spread across two stages in July and August 2025, have circulated on social media in recent months. Posts from industry sources suggested that the reductions coincided with performance appraisals and internal performance improvement plans.

In a statement received by MARKETING-INTERACTIVE, a TikTok spokesperson neither confirmed nor denied the layoffs but highlighted ongoing business evaluations. “We regularly evaluate business needs and make adjustments to strengthen our organisation and provide better service to our users,” TikTok stated.

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The spokesperson further reiterated TikTok’s commitment to Tokopedia, acquired through a 75% stake purchase worth US$1.5 billion last year, following Indonesia’s ban on TikTok Shop. “We continue to invest in Tokopedia and Indonesia as part of our strategy to drive sustainable growth and innovation,” the statement read.

Since the acquisition, rumours of job cuts have persisted, with the South China Morning Post previously reporting that around 450 employees - equal to about 9% of ByteDance’s Indonesian eCommerce workforce - were potentially impacted.

The reported layoffs echo wider trends in the sector. GoTo Group, Tokopedia’s former parent, recorded a sharp decrease in staff, from 7,522 in 2023 to 3,352 by 2024, according to its annual report.

Budi Primawan, secretary-general of the Indonesian eCommerce association, noted that no official confirmation has been received regarding the reported layoffs. “So far, we have not received official confirmation regarding the news. However, we understand that restructuring and efficiency are common in global technology companies after consolidation,” he said, adding that the priority is ensuring continuity of service for SMEs and consumers.

The developments underscore the intense competitive pressures in Indonesia’s eCommerce sector, as TikTok looks to solidify its foothold through Tokopedia while balancing efficiency with market expansion.

Ipsos’ eCommerce Seller Satisfaction 2025 report shows that competition among Indonesia’s major platforms now extends beyond transactions to supporting MSMEs and local brands, with Shopee emerging as the key competitor. Seventy percent of sellers ranked Shopee as their primary platform, and 62% credited its Shopee Export programme as the most effective in driving global expansion - well ahead of TikTok Shop (15%) and Tokopedia (16%).

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