Both said that they will pay severance to employees, with the amount relative to the number of years of service.
Other benefits include equity arrangement, or the right to buy Gojek stocks, support services, and outplacement programs to help employees find jobs elsewhere.
Thinking for the future
Gojek’s move comes as it finalizes an investment round of more than $3 billion at a valuation of $10 billion by investors Facebook, PayPal, Tencent and Google.
Gojek is known as Indonesia's premier unicorn, or startup worth a billion dollars. The company has earned decacorn status, as its net worth is over 10 billion dollars.
The ride hailing industry has been hard hit by the Covid-19 pandemic, with companies like Lyft and Uber among the most affected companies.
Gojek's cutbacks comes after Grab reduced five percent of its workforce, or 360 of its employees earlier this June. The move is effective in Southeast Asia, including Indonesia.
(Writer/Editor: Tunggul Wirajuda)
Simak breaking news dan berita pilihan kami langsung di ponselmu. Pilih saluran andalanmu akses berita Kompas.com WhatsApp Channel : https://www.whatsapp.com/channel/0029VaFPbedBPzjZrk13HO3D. Pastikan kamu sudah install aplikasi WhatsApp ya.