Tokopedia Reportedly Undergoes Major Workforce Restructuring as E-Commerce Industry Continues to Evolve

Indonesia's e-commerce sector is closely watching reports that Tokopedia has carried out a significant workforce restructuring as the company continues integrating its operations under ByteDance, the parent company of TikTok.

According to published reports, employee reductions affected several business units, with some divisions reportedly seeing workforce cuts of up to 90%. The company has not disclosed the total number of employees impacted or provided a detailed breakdown of the organizational changes.

Tokopedia became majority-owned by ByteDance after the Chinese technology company acquired approximately 75% of its shares in late 2023. Since then, the business has continued adjusting its operations as part of its long-term integration and growth strategy.

Responding to the reports, Indonesian E-Commerce Association (idEA) Chairman Budi Primawan said the association has not received any official explanation regarding the reported layoffs. As a result, idEA has refrained from commenting on the scale of the workforce reduction or the company's internal management decisions.

Budi emphasized that organizational restructuring is an internal matter for each company and should be viewed within the context of individual business strategies rather than as an indication of broader industry conditions.

He also cautioned against immediately linking workforce reductions to the rapid adoption of artificial intelligence. In his view, AI is currently being implemented by many companies primarily to improve productivity, streamline business processes, and assist employees rather than simply replacing human workers.

According to Budi, Indonesia's e-commerce industry continues to demonstrate strong long-term potential. Rising digital adoption, healthier market competition, and ongoing technological innovation are expected to support future industry growth despite operational adjustments undertaken by individual companies.

He added that sustainable success will depend on how effectively businesses adapt to changing market conditions while continuing to deliver value to consumers, merchants, creators, and employees.

TikTok previously acknowledged that organizational changes are taking place within its research and development (R&D) operations. The company said the restructuring is intended to better align resources with initiatives capable of supporting sustainable long-term growth across its business ecosystem, including sellers and content creators using its platforms.

Although TikTok confirmed the workforce adjustment, it did not disclose how many employees were affected. The company described the decision as difficult but stated that support measures would be provided to impacted staff during the transition process.

The latest development reflects a broader trend across the global technology sector, where companies continue refining organizational structures and improving operational efficiency following major business integrations. As competition intensifies, technology firms are increasingly balancing cost optimization with long-term innovation while seeking to maintain sustainable growth.