TLDRs:
- TikTok lays off 420 Tokopedia employees in two phases after reviewing team structure.
- Post-merger overlap elimination targeted logistics, marketing, operations, and warehousing roles.
- TikTok Shop’s rapid growth fuels consolidation, leaving Tokopedia with a smaller market share.
- Despite layoffs, TikTok maintains investment commitments and 2,500 Indonesian staff.
TikTok has officially confirmed layoffs at Indonesia-based e-commerce platform Tokopedia, affecting a total of 420 employees over two phases. The move follows an internal review of team sizes and business needs, the company said.
A spokesperson told Bisnis on Monday that such evaluations are standard practice to strengthen organizational efficiency and improve service to users. The first phase in July cut 180 positions, followed by 240 more in August. Even after these reductions, Tokopedia will retain approximately 2,500 employees in Indonesia, representing around 14-16% of its workforce.
The layoffs targeted overlapping functions in logistics, operations, marketing, and warehousing. Analysts say this pattern of workforce consolidation is typical after major acquisitions, as companies seek to realize “synergies” and streamline operations following mergers.
TikTok Shop Growth Drives Market Consolidation
The layoffs coincide with TikTok Shop’s rapid expansion in Indonesia. Over the past year, the platform has more than doubled its market share, climbing from 12.2% to 27.37%, putting it in closer competition with market leader Shopee, which holds 53.22%.
In contrast, Tokopedia’s market share has declined to 9.57%, highlighting why the merger made strategic sense despite workforce disruptions. The combined entity now controls more than one-third of Indonesia’s e-commerce market, a concentration that has drawn government attention for potential monopolistic effects.
Industry experts note that entertainment-driven shopping platforms like TikTok Shop are increasingly challenging traditional e-commerce models through live streaming, social content integration, and gamified shopping experiences.
Global Trend of Tech Workforce Shifts
TikTok’s restructuring at Tokopedia reflects broader patterns in the tech industry, where major platforms increasingly use AI and automation to optimize staffing.
For example, in Germany, TikTok replaced its Berlin trust and safety team with AI systems and outsourced labor, affecting nearly 40% of its local workforce.
Across the globe, platforms such as Meta, X, and Google are reducing human moderation roles in favor of AI-powered systems. While these changes are framed as efficiency improvements, they raise questions about accuracy, context sensitivity, and content safety, particularly in non-English markets.
Balancing Investment and Efficiency
Despite the layoffs, TikTok emphasized its ongoing commitment to investing in Tokopedia and the Indonesian market. The company views workforce optimization as a necessary step to strengthen the combined operations while ensuring competitive growth in a crowded e-commerce landscape.
Experts predict that as TikTok Shop continues to grow, further organizational adjustments may follow, but the company’s strategy signals confidence in long-term market positioning rather than immediate cost-cutting alone.
For Tokopedia employees impacted by the layoffs, the move highlights the realities of post-merger corporate restructuring, where overlapping roles and market-driven strategies often dictate workforce changes. TikTok’s continued investment, however, suggests that Indonesia remains a critical market for the platform’s regional ambitions.
