JAKARTA, KOMPAS.com –Indonesia's ride hailing and payments giant Gojek has turned to downsizing to remain competitive as the Covid-19 pandemic continues to wreak havoc on the global economy.
The firm has laid off 430 employees or nine percent of its workforce.
In a press release issued by Co-CEOs Kevin Aluwi and Andre Sulistyo on Tuesday, June 23, the company announced that the cutbacks will affect GoLife and GoFood Festival, as they are the services hit hardest during the Covid-19 pandemic.
“Macroeconomic and public trends have showed that GoLife services, like GoMassage and GoClean, as well as GoFood Festival in select locations, have experienced reduced demand [during the Covid-19 pandemic],” they said.
Also read: Indonesian Ride Hailing Giant Gojek Expected to Downsize Work Force
“[Due to the coronavirus], the public is more wary of activities where physical contact is inevitable, while social distancing is impossible.” Both men said GoLife and GoFood Festival will still apply until they are phased out on July 27.
They said no further layoffs are likely to happen in the company during the coronavirus pandemic.
Back to basics
Kevin and Andre said Gojek will focus its resources on its core businesses.