E-Commerce Association Highlights Tokopedia Layoffs, States the Industry Is Still Adapting

E-Commerce Association Highlights Tokopedia Layoffs, States Industry is Still Adapting - RakyatPost.co

The news of large-scale layoffs (PHK) occurring at Tokopedia has drawn the attention of the Indonesian E-Commerce Association (idEA). The organization stated that it has not yet received an official explanation from the company regarding the policy and views the issue as an internal corporate decision.

The General Chairman of idEA, Budi Primawan, stated that the association is not in a position to assess the number of affected employees or the reasons behind the policy. According to him, up to this point, no official information has been conveyed by Tokopedia to the association regarding the efficiency process.

The mass layoffs at Tokopedia came to light following reports that ByteDance, the parent company of TikTok which became the majority shareholder of Tokopedia at the end of 2023, was cutting staff across several divisions. Circulating information suggests that the cuts were made in significant numbers as part of an organizational alignment following the business integration.

Nevertheless, idEA reminded that structural changes within the digital industry do not always correlate with the utilization of artificial intelligence (AI). According to Budi, it is still too early to conclude that workforce efficiency is happening because AI is replacing human roles.

He explained that many e-commerce companies actually leverage AI to increase productivity, accelerate business processes, and assist employees in their work, rather than solely replacing human resources. Therefore, any corporate policy needs to be viewed based on the respective business needs and strategies.

Amidst these dynamics, idEA assesses that the outlook for the Indonesian e-commerce industry remains promising. Digital transaction growth, an increasing number of businesses utilizing online platforms, and technological developments are still considered factors that anchor the long-term growth of this sector. The association also hopes that e-commerce companies can continue to maintain a balance between operational efficiency, technological innovation, and human resource development so that the national digital ecosystem continues to grow healthily.

Previously, TikTok stated that it is continuing to evaluate its organizational structure following the integration with Tokopedia. The move is reportedly aimed at creating a more effective organization while supporting the company’s future business strategy, although the company has not yet detailed the exact number of employees affected by the policy.

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