GoTo cuts 1,300 jobs because it expects “uncertainty” to persist for a long time • TechCrunch

GoTo Group will cut 1,300 jobs, or 12% of its workforce, it told its employees early Friday, as Indonesia The largest Internet company Attempts to reduce costs and improve finances.

“Achieving financial independence more quickly comes at a huge cost to us, because when we take a closer look at how fundamentally we need to change (business focus and ways of working), it also includes you, the people who are the backbone of this company,” the GoTo CEO writes. Group Andre Soelistyo in an email to employees, seen by TechCrunch.

He wrote, “It pains me to say that as a result of our organizational review, we have to part ways.” “I know you are filled with so many emotions right now, pain, anger, sadness, and most of all, sadness. I feel the same way.”

To join dozens of domestic and global peers in its decision to cut the workforce to counter an economic slowdown, or rising interest rates, or as Soelistyo described in an email Friday, “uncertainties will linger for some time, and there’s not much we can do to change that.”

A GoTo spokesperson told TechCrunch that the move is part of its increased attempts to “accelerate its progress toward becoming a truly sustainable and financially independent company, centered around its core offering of on-demand fintech and e-commerce services.”

“GoTo has made steady progress in this area supported by its strategic focus on quality platform users, reducing stimulus spending, and driving deeper synergies across its ecosystem.

“To further accelerate, since the beginning of the year, the Company has implemented a comprehensive cost optimization process that includes aligning operating models, standardizing operations, consolidating vendors, renegotiating contracts for various cost elements, and finding structural efficiencies. By the end of the second quarter, approximately of 800 billion rupees ($51 million) in structural cost savings in areas such as technology, marketing and outsourcing.

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