Southeast Asia’s on-demand multi-series giant gojek said in an internal email communication today that it will let go of 430 people (about nine per cent of the workforce).
Additionally, the firm will close two of its products — GoLife, which offers at-home services of massage and cleaning, and GoFood Festivals, its physical food locations.
Many of the employees affected by this retrenchment decision are from GoLife and GoFood Festivals units.
According to the firm, these businesses are dependent on close human interaction and have seen a significant downturn over the past few months as the COVID-19 pandemic has affected consumer habits.
GoLife will close on July 27.
gojek said these measures will provide it with the resources to focus on the business areas where it has the most impact, primarily encompassing its three core services, but also the services that have shown promise as a result of the pandemic such as logistics, which has grown by 80 per cent since the pandemic began, or groceries, which has more than doubled.
Gojek HQ employees, who are negatively affected by this, will be provided with benefits, including enhanced severance payments, health insurance scheme extension, outplacement support and being allowed to keep their laptops to help with their future job search.