Indonesia’s largest internet company GoTo Group is planning to cut more than 1,000 jobs as it seeks to trim costs and shore up its finances, according to people familiar with the matter.
The reduction, equal to more than 10% of the workforce, will affect all divisions, said the people, who asked not to be identified as the deliberations are private. Shares of the company rose as much as 9.6% in Jakarta, the biggest intraday gain in almost two months.
GoTo joins tech giants from Meta Platforms Inc. to Apple Inc. that are cutting staff or pausing hiring after years of heady expansion succumbed to a global economic downturn. Job cuts in the technology industry are nearing levels seen in the early stages of the Covid-19 pandemic, as companies both large and small curtail ambitions and brace for tough times ahead.
The ride-hailing, e-commerce and fintech company and its publicly traded peers such as Sea Ltd. and Grab Holdings Ltd. — all of which are loss-making — have seen valuations drop as they navigate an economic slowdown, rising interest rates and accelerating inflation. GoTo executives have said they are trying to balance spending on growth with its effort to reach profitability.