Gojek Cuts 430 Jobs As Indonesian Economy Slows Down Due to Covid-19

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.

Reducing numbers

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.

“We will emphasize the transportation, food delivery and electronic money or cashless payments for the long term in the wake of Covid-19," they said. "These services are still much in demand.”  

But Kevin and Andre added that Gojek still has its eye on the future.

Also read: Grab Reduces 5 Percent of Workforce Due to Coronavirus Pandemic

"We will develop our logistics services as it experienced 80 percent growth during [the coronavirus] pandemic," they asserted. "The [GoShop] grocery service has also been making strides as its revenue doubled during this period." 

Supporting affected employees