TikTok confirms job cuts in Indonesia

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TikTok has confirmed it has laid off employees in Indonesia as the company restructures its research and development (R&D) organisation, marking the latest move in its post-merger integration with Tokopedia.

In a statement, the company said the restructuring is aimed at strengthening its long-term business strategy but did not disclose how many employees were affected or which teams were impacted.

"We are realigning our R&D organisation towards areas that can drive sustainable long-term growth for our business, as well as for the creator and seller communities on our platform. This was not an easy decision, and our focus is on supporting colleagues affected by the transition," TikTok said.

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"We will continue to invest in making Tokopedia a better platform for our users and sellers, while continuing to empower local businesses to build a sustainable eCommerce ecosystem in Indonesia."

The confirmation follows claims shared by startup community platform Ecommurz that ByteDance, TikTok's parent company, had reportedly laid off around 90% of Tokopedia's workforce.

The move comes as TikTok continues integrating Tokopedia after acquiring a 75% stake in the Indonesian eCommerce platform in December 2023 and merging the two businesses.

The integration has faced challenges. Last year, Tech in Asia reported growing dissatisfaction among sellers, with some arguing that Tokopedia had lost its identity as Indonesia's homegrown eCommerce champion following the merger.

The restructuring also appears to extend beyond Indonesia. Earlier, Bloomberg reported that TikTok is cutting approximately 300 jobs in Dublin, Ireland, as part of a broader organisational reshuffle.

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