ByteDance Ltd. is reducing its workforce by approximately 450 positions at its Indonesian e-commerce division. This comes as the company merges its TikTok Shop with local competitor Tokopedia in January.

ByteDance Trims Indonesian E-commerce Teams

According to sources familiar with the matter, the company will begin laying off a significant number of employees, amounting to approximately 9% of its workforce, starting as early as this month.

The cuts indicate that the Chinese social media giant is undergoing a restructuring of its Indonesian e-commerce operation, aiming to reduce expenses following the merger of TikTok Shop with GoTo Group's Tokopedia in a $1.5 billion agreement, Bloomberg reported. 

According to anonymous sources, ByteDance is currently downsizing its e-commerce teams, specifically in advertising and operations, to streamline functions and avoid duplication. After the merger of TikTok Shop and Tokopedia, ByteDance's Indonesian e-commerce business now boasts a workforce of approximately 5,000 employees.

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GoTo Agreement Supports ByteDance's Indonesian Relaunch

The unique agreement, which led to GoTo becoming a silent supporter of the combined e-commerce venture, enabled ByteDance to relaunch its Indonesian business and adhere to the regulations put in place to halt its online retail service. 

ByteDance, along with other prominent Chinese tech companies like Alibaba and Tencent Holdings Ltd., has been taking steps to streamline their operations and improve their financial performance amidst an economic slowdown, Business Times reported. 

These companies have collectively reduced their workforce by tens of thousands of employees over the past two years.

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