Tokopedia and ShopTokopedia announced the efficiency of their companies, namely by laying off a number of employees, Friday (14/6/2024). In its statement, the company did not mention the number of employees affected by layoffs.
However, the Bloomberg report stated that the number of employees affected by layoffs reached 450 out of 5,000 people. The Director of Corporate Affairs for Tokopedia and ShopTokopedia, Nuraini Razak, mentioned that during the merger of TikTok and Tokopedia, they discovered some areas that needed improvement within the organization. They also worked on aligning the team with the company’s goals.
“As a result, we have to make the necessary adjustments to the organizational structure as part of the company’s strategy so that it can continue to grow,” said Nuraini.
Tokopedia expressed thanks to the affected employees
Nuraini, representing Tokopedia and ShopTokopedia, expressed her thanks to the affected employees. The company also said it would work to support them through the transition period.
“We thank the TikTok and Tokopedia teams for their contribution and commitment during the merger period, and we will continue to strive to support them through this transition period,” said Nuraini.
Streamlining the organizational structure is part of the organizational alignment following the merger of TikTok Shop and Tokopedia. Quoting from CNBCIndonesia.com, Tokopedia is now a subsidiary of ByteDance, the parent company that owns TikTok and TikTok Shop. ByteDance announced the acquisition of Tokopedia from GoTo in December 2023.
ByteDance now controls 75.01% of Tokopedia’s shares and GoTo’s ownership in Tokopedia is 24.99%. After the acquisition, TikTok Shop is operated by Tokopedia.
As part of the acquisition, ByteDance invested capital worth USD 1.5 billion or around IDR 23.38 trillion in Tokopedia. By taking this step, ByteDance can resume its operations in Indonesia by adhering to the current regulations, which led to the ban of TikTok Shop due to rule violations.
During the merger process, Tokopedia and ShopTokopedia have recorded a lot of growth or improvements on their platform. In the Buy Local campaign, Tokopedia recorded that the average increase in sales of food and beverage business actors who participated in the Buy Local campaign reached more than 9 times, compared to before joining the campaign. On the other hand, TikTok via ShopTokopedia noted that the volume of orders placed in the Buy Local campaign on ShopTokopedia increased 2.5 times in February 2024 compared to the average order volume in September 2023.
Sales of groceries and electronic products on Tokopedia and ShopTokopedia also experienced an almost double increase in sales during the Extra Fun Ramadan campaign which took place from 23 February to 5 April 2024 compared to the previous year. Meanwhile, fashion products jumped almost 2.5 times.
Apart from that, ShopTokopedia also noted that the average sales of business actors who took part in the Extra Fun Ramadan campaign increased more than 3 times compared to the weekly average in February 2024.
The Indonesian version of this article can be read in Gizmologi.ID
