Gudang Garam Denies Mass Layoffs, Cites Normal Employee Turnover

Jakarta, CNBC Indonesia – PT Gudang Garam Tbk (GGRM) has denied reports of mass layoffs, following the circulation of a farewell video featuring company employees. This news adds to concerns within Indonesia’s employment sector.

Declining purchasing power and a slowdown in the national economy have impacted cigarette sales and production, possibly leading to speculation about workforce reductions.

Director & Corporate Secretary GGRM Heru Budiman clarified that the company underwent a normative process involving 309 employees through standard pension procedures, voluntary early retirement, and the conclusion of fixed-term employment contracts.

Heru stated that these changes do not affect operational sustainability and do not present any legal issues. “Currently, the company’s operations are running as usual, from production to distribution,” he said in a disclosure, as of Wednesday, September 10, 2025.

Gudang Garam reported a net profit of rp 117.1 billion (approximately $7.3 million USD) for the first half of 2025.