ByteDance Ltd. is set to cut approximately 450 jobs at its Indonesian e-commerce division, marking the first significant downsizing since merging its TikTok Shop with local competitor Tokopedia in January. This reduction represents around 9% of the division's workforce and will begin as early as this month. However, the final number may vary depending on changing conditions.
The job cuts are part of ByteDance's strategy to streamline its Indonesian e-commerce operations and eliminate redundant roles following the $1.5 billion merger between TikTok Shop and GoTo Group's Tokopedia. Indonesia is one of ByteDance's most crucial markets for e-commerce expansion, but it faces stiff competition from Sea Ltd.’s Shopee and Alibaba Group Holding Ltd.’s Lazada.
Staff reductions will affect various teams, including advertising and operations, aiming to remove overlapping responsibilities. Before the layoffs, ByteDance's Indonesian e-commerce business employed around 5,000 individuals. The company has opted not to comment on the matter.
This unique merger has allowed ByteDance to reestablish its Indonesian operations and adhere to local regulations designed to protect domestic e-commerce services and small businesses from being overshadowed by large, foreign competitors. These regulations were initially introduced by Indonesia to safeguard local interests.
ByteDance joins other Chinese tech giants like Alibaba and Tencent Holdings Ltd. in optimizing operations and improving financial performance amidst an economic slowdown. These firms have collectively reduced their workforces by tens of thousands over recent years. Additionally, ByteDance's TikTok recently laid off hundreds of employees globally in its marketing and operations divisions as part of a broader organizational restructuring.