TokopediaDownsizingSparksIndonesianGovernmentConcernsOverMassLayoffs

Indonesian authorities have met with representatives of e-commerce platform Tokopedia and its majority owner TikTok, after news of downsizing at the local tech giant sparked fears of mass layoffs.

Rumors surfaced on social media in early July claiming that ByteDance Ltd., the Chinese owner of TikTok, was planning to lay off 90% of Tokopedia’s workforce following the launch of Tokopedia Lite, triggering a swift response from the Indonesian government, who summoned company representatives for questioning.

About 200 workers accepted the compensation packages to leave Tokopedia rather than being unilaterally fired, Deputy House of Representatives Speaker Sufmi Dasco Ahmad said on Monday, citing information provided by TikTok during a meeting called to clarify rumors of mass layoffs.

Stephanie Susilo, executive director of Tokopedia, said that the downsizing is a result of an organizational restructuring, adding that some affected employees were offered internal job transfer opportunities.

Caixin learned from sources close to TikTok that the job cuts primarily affected research and development personnel as a result of internal human resource integration.

The downsizing highlights the operational integration challenges TikTok faces after taking control of Tokopedia to bypass a national ban on e-commerce sales on social media platforms. TikTok completed its acquisition of a 75% stake in Tokopedia in January 2024, merging TikTok Shop Indonesia into Tokopedia while leaving GoTo with a minority stake.

Since taking control of Tokopedia, TikTok’s e-commerce business has grown rapidly in Indonesia. Data from market research firm Momentum Works showed that TikTok Shop’s share of the Indonesian e-commerce market grew from 5% in 2023 to 38% in 2025.

Indonesia is TikTok’s largest market in Southeast Asia. The company disclosed in October 2025 that it had more than 160 million users in Indonesia, accounting for one-third of its total users across Southeast Asia.

ByteDance’s overseas revenue grew nearly 50% year-on-year in 2025, driven largely by TikTok’s e-commerce business. Despite this top-line growth, ByteDance’s 2025 net profit plunged more than 70% as its investment in artificial intelligence continued to grow.

Contact editor Ding Yi (yiding@caixin.com)