ByteDance reportedly cuts jobs in ID following TikTok and Tokopedia merger

Tiktok’s parent company ByteDance is reportedly cutting around 450 jobs in Indonesia following the merger of TikTok shop and local digital company Tokopedia in January.

According to multiple reports such as South China Morning Post, this marks the first round of layoffs since the merger and the cuts equal to about 9% of staff at the Indonesian division. The layoff will start as soon as this month, where the eCommerce teams including advertising and operations will be impacted, said the report. 

In an official statement sent to MAKRETING-INTERACTIVE, a ByteDance spokesperson said, "Following the combination of TikTok and Tokopedia, we identified areas to strengthen our organisation and better align our teams with company goals. As a result, we will make necessary adjustments to internal structure as part of our strategy for continued growth."

"We are grateful to the TikTok and Tokopedia teams for their contributions and commitment during the merger and aim to support employees throughout this transition," the spokesperson added. 

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This comes after TikTok suspended its online shopping service in Indonesia in 2023 as a result of the country's decision to ban all eCommerce transactions on social media platforms.

ByteDance’s TikTok re-entered the Indonesian market by establishing a beneficial strategic partnership with Tokopedia, the largest digital ecosystem in Indonesia, in December 2023. This strategic eCommerce partnership aimed to drive long term growth for Indonesia’s micro, small, and medium enterprises (MSME) sector and the country’s digital economy as a whole, according to the release of GoTo Group, Tokopedia’s owner.

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Earlier this year, the media giant has completed the transaction and committed to invest over US$1.5bn in the enlarged entity over time. Under the agreement, TikTok will be taking a controlling stake up to 75.01%.

After the combination, ByteDance’s Indonesian eCommerce business has about 5,000 employees.

In the post-partnership era, TikTok Shop and Tokopedia have launched various campaigns leveraging the partnership to provide greater opportunities for MSMEs and to serve the Indonesian community. The two entities also see the emergence of livestreaming in the market as another dimension to develop.

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