TikTok Shop, the e-commerce division of ByteDance, is preparing to trim several hundred roles in Indonesia, marking the latest chapter in its ongoing restructuring. The move comes in the wake of TikTok's acquisition of Tokopedia’s operations from GoTo and reflects a recalibration of business priorities amid efforts to streamline operations and consolidate teams.

Although the company has yet to officially confirm the number of roles affected, signs point to a sizeable reduction.

Gabriela Zikrika, speaking on behalf of Tokopedia and TikTok Shop on 2 June 2025, acknowledged that the company conducts regular reviews of its organisational structure. While she stopped short of confirming the layoffs, she noted that such evaluations are “part of our strategy to drive sustainable growth and innovation,” Tempo reported.

Internal chatter suggests the axe may fall as early as July, with hundreds of employees expected to be impacted. Two Tokopedia staff members interviewed at the company’s Jakarta office admitted that word of the planned downsizing has been circulating for weeks, fuelling uncertainty on the ground.

A Tempo source with inside knowledge corroborated the timeline and added that remaining Tokopedia staff will eventually relocate to TikTok’s offices.

Meanwhile, GoTo CEO Patrick Walujo sidestepped media queries about the impending layoffs during a public event.

A consolidation in motion

TikTok and Tokopedia officially joined forces in January 2024 after ByteDance inked a deal with PT GoTo Gojek Tokopedia Tbk. The Chinese tech titan emerged as the controlling party, acquiring a 75.01% stake in Tokopedia through TikTok Nusantara. GoTo retained a 24.99% minority share.

Soon after the ink dried, the integration process began in earnest. By June 2024, ByteDance had already made tough calls – slashing 450 jobs across Tokopedia at its behest. Those layoffs were early indicators of deeper structural shifts to come.

A Bloomberg report suggests the current round of job cuts this year will affect departments across the board – from logistics and warehousing to operations and marketing.

Once the dust settles, the combined entity is expected to retain a leaner workforce of around 2,500 in Indonesia, a sharp drop from the 5,000 employees on the books at the time of the merger.

Despite the turbulence, TikTok remains bullish on its long-term prospects in Southeast Asia’s largest digital economy. In December 2024, the company pledged a US$1.5 billion investment in GoTo, sealing a deal that gave TikTok full operational control of Tokopedia. At one point, there had been speculation about forming a joint venture. Instead, TikTok opted for direct stewardship – a move aimed at eliminating overlapping functions and creating a more agile business.

Regulatory ripples

Not everyone is cheering the consolidation. Indonesia’s antitrust watchdog has been keeping a close eye on the tie-up, voicing concerns over potential market dominance. According to a Reuters report, the regulator has flagged a rise in market concentration, warning that the merger could pave the way for higher prices and reduced competition.

To keep things in check, authorities have imposed guardrails. These include requirements to maintain open access for third-party payment and logistics providers and prohibitions on self-preferencing and predatory pricing. TikTok declined to comment on the antitrust scrutiny, while Tokopedia remained silent when approached by Reuters.

A balancing act between growth and goodwill

As TikTok Shop tightens its belt and reshapes its team in Indonesia, the company is walking a tightrope – balancing investor expectations with the social responsibility of maintaining jobs in a country with a burgeoning digital economy.

The layoffs are part of a broader strategy to achieve “sustainable growth and innovation,” according to the company.

But for employees caught in the crossfire, the reality is far less abstract. As the restructure unfolds, all eyes will be on how TikTok manages the fallout – both internally and in the eyes of regulators and the public.

In a market as dynamic as Indonesia, where tech is often the canary in the coal mine for broader economic trends, this consolidation may well serve as a bellwether for what’s to come across Southeast Asia’s digital commerce sector.