Tokopedia laid off roughly 2,250 workers on July 1, 2026, effective immediately, cutting about 90 percent of its remaining staff and leaving the Indonesian e-commerce platform with fewer than 300 active employees. Two days later, PT GoTo Gojek Tokopedia Tbk (GOTO) filed a disclosure with the Indonesia Stock Exchange (IDX), stating the layoffs carry no material financial impact on the company.
Why GoTo calls the layoffs "not material"?
The statement is accurate in accounting terms. GOTO now holds only 24.99 percent of Tokopedia after divesting its majority stake to TikTok Pte Ltd in early 2024. Of every rupiah of losses Tokopedia books from these layoffs, including severance for thousands of workers, only 24.99 cents flows through to GOTO's financial statements. At GOTO's scale, that figure is not large enough to move the books.
In a disclosure dated July 3, 2026, GOTO said it "respects every step taken or to be taken by Tokopedia's management in connection with the organizational adjustment plan," and confirmed "there is no material impact on the Company's share of PT Tokopedia's net profit/(loss)." The letter was signed by Director Simon Tak Leung Ho.
From 7,400 to hundreds: two years of gradual downsizing
Tokopedia once employed roughly 7,409 people before its integration with TikTok. Shortly after TikTok Pte Ltd completed its majority acquisition, a first wave in mid-2024 cut about 450 employees, roughly 9 percent. Further rounds through 2025 eroded the headcount to an estimated 2,500. After the July 2026 layoffs, active Tokopedia staff is estimated at below 300, less than 4 percent of the pre-acquisition peak.
A TikTok spokesperson described the move as "organizational alignment of research and development in areas that can drive sustainable long-term growth." Affected divisions reportedly include IT, customer service, and warehouse teams. Some technical functions have reportedly been moved to coordination in mainland China.
Association: too early to draw conclusions
Budi Primawan, chairman of the Indonesian E-Commerce Association (idEA), said the association had not received an official explanation from either Tokopedia or TikTok and was not in a position to comment on the numbers or the company's internal policy. He also said it was too early to link every efficiency drive or organizational change directly to AI replacing workers.
Several questions remain open. TikTok has not released an official count of affected employees; the 90 percent figure comes from headcount estimates circulating in media reports, not directly confirmed by management. The severance structure and whether employees will pursue labor claims have not been announced. GOTO's stock price reaction in trading next week will be the market's concrete reading of the "not material" claim, while the Ministry of Manpower and the exchange regulator have not yet issued an official position.
