ByteDance to cut 450 jobs in Indonesia after Tokopedia deal

(Bloomberg) – ByteDance Ltd. is cutting around 450 jobs at its Indonesian e-commerce arm in the first round of cuts since its TikTok store merged with local rival Tokopedia in January.

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The reductions, which concern around 9% of the sector’s employees, will begin this month, according to sources familiar with the matter. The final figure is under discussion and could fluctuate depending on changing conditions, the sources said.

The cuts indicate the Chinese social media giant is revamping its Indonesian e-commerce operations, seeking to eliminate costs after combining TikTok Shop with GoTo Group’s Tokopedia in a $1.5 billion deal. dollars. Indonesia is one of the first markets for ByteDance’s e-commerce ambitions – and so far the largest – but competition is intense with rivals such as Sea Ltd’s Shopee. and Alibaba Group Holding Ltd.’s Lazada.

ByteDance is cutting staff on e-commerce teams, including advertising and operations, in part to eliminate duplicate functions, said the people, who asked not to be identified because the discussions have not been made public . Following the combination of TikTok Shop and Tokopedia, ByteDance’s Indonesian e-commerce business has approximately 5,000 employees.

A representative for ByteDance declined to comment.

The unusual deal, which made GoTo a passive backer of the merged e-commerce operation, allowed ByteDance to restart its Indonesian operations and comply with regulations introduced to end its retail service online. Indonesia was the first to introduce regulations aimed at protecting its local e-commerce services and small businesses from damage by larger foreign companies.

ByteDance has joined China’s technology leaders, from Alibaba to Tencent Holdings Ltd., in streamlining their businesses and shoring up their financial results amid an economic slowdown, as the combined companies have cut at least tens of thousands of jobs over the past few years. last two years. ByteDance’s TikTok, which faces a divestment or ban law in the United States, also laid off hundreds of employees from its marketing and operations teams around the world last month, according to people familiar with the matter, in part of a larger overhaul carried out by its Chinese owner.

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