The company is laying off 430 staff – 9 percent of its workforce – to prioritize its core businesses of payments, transport, and food delivery.
Southeast Asian on-demand multi-service platform and digital payment technology group Gojek will be shuttering several non-core services that have been impacted by the pandemic and will streamline the company structure for future growth and sustainability, the company said in a statement on Wednesday.
The layoffs will be Gojek's only Covid-19 related layoffs, the statement said, noting that many of the 430 staff leaving are from its GoLife and GoFood Festivals businesses that will be closed, owing to a «significant downturn over the past few months as the COVID-19 pandemic has affected consumer habits.»
«Focusing on our core services, shutting down verticals that are no longer viable during this period, and making bold bets on changing customer needs will ensure that we continue making a positive impact on the lives of millions of people while securing future growth,» co-CEOs Andre Soelistyo and Kevin Aluwi said in internal email sent to staff.
Payments Growth
Launched in 2011, Gojek has been expanding its ride-hailing platform to include a range of on-demand services and allow its customers to make online payments, and has been beefing up its coffers to take on regional rival Grab, with a focus on supporting payments and financial services in the region.
In March, Gojek completed a $130 million deal for Jakarta-based mobile point-of-sale (POS) market leader Moka, making it a major player in Indonesia's digital payments space. It's Gopay platfork has focused on increasing access to the digital economy among micro, small and medium enterprises, the majority of which continue to rely on cash to operate.
In June, Gojek announced that Facebook and PayPal had joined as investors in its current fundraise which has reached almost $3 billion and also includes Visa, Tencent, Google and more. As part of the agreement, PayPal’s payment capabilities will be integrated into Gojek’s services and the two companies will also collaborate to allow customers of GoPay, Gojek’s digital wallet, to gain access to PayPal’s network of merchants globally.
Grab Streamlines
The news follows Grab's announcement on 16 June that it would be letting go of 5 percent of its workforce as part of plans to become a leaner organization to better face challenges of a post-Covid economy. Founder Anthony Tan said the strategic roadmap for Grab Financial, which is a «long-term bet for the future,» remains unchanged
