GoTo Group is cutting 1,300 jobs, or 12% of its workforce, staff said early Friday, as Indonesia’s largest internet company tries to cut costs and improve finances.
“Achieving financial independence more quickly has a profound cost to us, because when we take a hard look at how we need to fundamentally change — business approach and ways of working — it also includes you, the people who are the backbone of this company. GoTo Group CEO Andre Soelistyo wrote in an email to staff, seen by TechCrunch.
“It pains me to say that as a result of our organizational review, we have to part ways with some of you,” he wrote. “I know you are filled with many emotions right now, pain, anger, sadness, and most of all, grief. I feel the same.”
GoTo joins dozens of local and global peers in its decision to reduce the workforce to weather an economic slowdown, rising interest rates or, as Soelistyo described it in Friday’s email, “uncertainties will linger for a while.” time and there’s not much we can do to change that.”
A GoTo spokesperson told TechCrunch that the move is part of its growing attempts to “accelerate its progress towards becoming a truly sustainable and financially independent business, focused on its core offerings of fintech, e-commerce and on-demand services.” .
“GoTo has made steady progress in this area supported by its strategic focus on high-quality cross-platform users, reducing incentive spend, and driving deeper synergies across its ecosystem.
“To further accelerate, since the beginning of the year, the company has been implementing a comprehensive end-to-end cost optimization exercise that involves aligning operating models, unifying processes, consolidating vendors, renegotiating contracts for various cost elements, and finding structural efficiencies. . By the end of the second quarter, approximately Rp800 billion ($51 million) in structural cost savings had been achieved in areas such as technology, marketing and outsourcing,” the spokesperson added.