Jessica Goodfellow
Jun 24, 2020

Gojek slashes 9% of workforce due to COVID-19

Indonesian super app is cutting 'non-core' divisions to focus on transport, food delivery and payments.

Gojek slashes 9% of workforce due to COVID-19

Gojek is cutting 9% of its workforce, equivalent to 430 employees, as it focuses on its 'core' services to offset declines caused by the COVID-19 pandemic.

The Indonesian super app is shutting down verticals "that are no longer viable during this period", co-CEOs Andre Soelistyo and Kevin Aluwi said in an internal email sent to staff. That includes its GoLife lifestyle division, which offers home services like massages and cleaning, and GoFood Festivals, a festival featuring GoFood merchants.

Of the 430 workers that have been retrenched this week, "many" work for these divisions, according to reports.

Cutting these divisions will allow the company to focus on its "core" services of transport, food delivery and payments. The latter informed Facebook's recent investment in Gojek, with WhatsApp chief operating officer Matt Idema saying at the time the combination of WhatsApp's communication platform with Gojek's commerce platform, distribution and payment infrastructure can "bring millions of people into Indonesia’s growing digital economy".

Gojek's cost-cutting measures follow those of rival Grab, which announced earlier this month that it was cutting about 360 positions, or about 5% of its headcount.

Source:
Campaign Asia
Tags

Follow us

Top news, insights and analysis every weekday

Sign up for Campaign Bulletins

Related Articles

Just Published

1 day ago

BYD closes 2024 on top, but can it sustain its EV ...

BRAND HEALTH CHECK: After outpacing Tesla and smashing 2024 sales records, BYD faces its toughest road yet. With 45% EU tariffs and a locked-out U.S. market, can the EV giant supercharge global ambitions or stall under trade barriers?

1 day ago

Move and win roundup: Week of January 2, 2025

As 2025 kicks off, Campaign rounds up the first major people moves and business wins of the year. From leadership exits to new creative wins, catch all the latest updates in January's first edition.

1 day ago

What's in, what's out: Marketing trends you need to ...

OUTLOOK 2025: A clear, concise and constantly updated guide for industry trends and predictions—all in one place. Check back often for the freshest updates.