TikTok Shop, the e-commerce arm of ByteDance Ltd., is reportedly preparing to lay off hundreds of employees in Indonesia as part of a major workforce reduction. This cost-cutting measure follows its acquisition of local competitor Tokopedia last year.

According to a Bloomberg report published on Monday (June 2, 2025), the Chinese social media giant is downsizing staff across its e-commerce divisions, including logistics, operations, marketing, and warehouse management.

An anonymous source revealed that another round of layoffs could begin as early as July. After these reductions, the combined workforce of Tokopedia and TikTok Shop in Indonesia is expected to total around 2,500 employees.

A TikTok spokesperson stated that the company routinely reviews its business needs and makes organizational adjustments to strengthen its structure and enhance customer service.

"We remain committed to investing in Tokopedia and Indonesia as part of our broader strategy to drive sustainable growth and innovation," said the spokesperson.

TikTok Shop is currently accelerating its organizational restructuring in Indonesia by trimming much of the staff it acquired through the merger with Tokopedia, a subsidiary of GoTo Group. The acquisition process involved a capital injection of up to US$1.5 billion.

Indonesia was not only one of the first markets for ByteDance’s e-commerce ambitions but also remains its largest. However, the market is highly competitive, with strong players like Sea Ltd.’s Shopee and Alibaba Group Holding Ltd.’s Lazada.

Following the merger between TikTok Shop and Tokopedia earlier last year, ByteDance’s e-commerce business in Indonesia employed approximately 5,000 people.

However, under the terms of the agreement, GoTo took on a passive role in the joint e-commerce operations. Meanwhile, the Indonesian government has implemented regulations aimed at safeguarding local e-commerce platforms and small businesses from being adversely impacted by large foreign entities. This regulatory environment prompted the collaboration between TikTok Shop and local firms.