Shopee Indonesia lays off employees, how much? page all

KOMPAS.comShopee Indonesia recently confirmed that it would terminate the employment relationship (layoffs) to a number of its employees.

According to them, this must be done as a measure of business efficiency in the country.

In an official statement, Shopee Indonesia did not specify how many employees were affected by layoffs. However, launching BloombergShopee Indonesia is said to be planning to lay off about 3 percent of its total employees.

Based on the internal memo that was obtained Bloomberg, employees affected by layoffs began to receive notifications today, Monday (19/9/2022).

Also read: Shopee Indonesia lays off a number of employees

When referring to iPrice data, the number of Shopee Indonesia employees in the first quarter of 2022 is said to be in the range of 6,200 people. Based on this data, the number of employees affected by layoffs at Shopee Indonesia is around 186 people.

It should be noted, this number is just a guess and assumption if the number of employees as of September 2022 is still at 6,200 people and does not decrease/increase from the range of numbers in the first quarter of 2022.

It is not clear whether this figure is correct or not. However, what is clear is that the layoffs seem to be forced to be done in order to increase efficiency and reduce operating costs for the Singapore-based company.

As is known, when referring to financial report In the first quarter of 2022, Sea Group, the parent company of Shopee, recorded a net loss of US$931 million or around Rp. 13.9 trillion.

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This figure has more than doubled compared to the total loss in the same period the previous year, which was “only” recorded at US$ 433 million or around Rp. 6.49 trillion.

That said, this loss was caused by the poor performance of Shopee’s business in several countries.

Also read: Shopee Indonesia lays off employees, how is the business operation?

Among them such as game blocking Free Fire (Garena) in India, until his departure e-commerce which is identical to the orange color from several markets in Europe and Latin America.

Then, the skyrocketing loss rate is reportedly also caused by the impact of global economic problems, as well as competition in the sector e-commerce which is getting more intense.

Layoffs are the last step

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Shopee Indonesia’s Head of Public Affairs, Radynal Nataprawira, said that it was with a heavy heart that his company had to release a number of its employees in Indonesia.

Before this step was taken, Radynal said that his party had tried to make adjustments to several business policies amidst the current global economic uncertainty.

Now, said Radynal, layoffs are the last step that must be taken by Shopee Indonesia. The efficiency measures are in line with the company’s global focus on achieving independence and sustainability.

“The company will focus on independent and sustainable business growth, and we want to strengthen and ensure our company’s operations are stable in the current economic situation,” explained Radynal.

Also read: Shopee Stops Operations in Chile and Mexico, Leaves Argentina

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As mentioned above, Radynal did not specify how many Shopee Indonesia employees were laid off, nor which divisions (ShopeeFood, ShopeePay, or others) were laid off.

What is clear, Radynal ensures that his party will provide material support, such as providing severance pay in accordance with statutory provisions with an additional one month’s salary, for employees affected by layoffs.

In addition, employees who have been laid off can still use health insurance facilities from Shopee Indonesia until the end of the year.

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