The latest round of layoffs has hit the Indonesian startup industry with JD.ID, the local arm of Chinese JD.com, confirmed that around 30 percent of its employees, or 200 people, have been let go, the company said on Tuesday.
The company cited global challenges and intense competition in the e-commerce sector as reasons to streamline its operations. This follows a trend of layoffs at Indonesian startups over the past year, including Sayurbox, Ruangguru, Ajaib, and Shopee.
“In response to the rapidly changing business landscape, we have taken steps to streamline the company so that we can continue to adapt and move forward,” Setya Yudha Indraswara, JD.ID’s head of corporate communications and public affairs, said in a statement.
Setya cited global challenges such as rising interest rates, geopolitical instability in Ukraine and Russia, and intense competition in the e-commerce sector as reasons for the need to cut costs and adapt. Despite the layoffs, Setya assured that JD.ID remains focused on improving its business model and cash flow to achieve positive margins and ensure its employees receive the support they need.