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Gojek lays off 430 people to refocus on payments, transport, and food delivery

Gojek will be shutting down its vertical businesses GoLife and GoFood Festivals.

Gojek

Indonesia’s super app Gojek confirmed on Tuesday evening that it is laying off 430 employees or 9% its headcount, as a result of the COVID-19 pandemic.

In an internal email, the co-CEOs Andre Soelistyo and Kevin Aluwi said that they will prioritize the core businesses payments, transport, and food delivery, to prepare the company for a sustainable future. At the same time, Gojek will be closing the verticals GoLife and GoFood Festivals.

“Shutting down verticals that are no longer viable during this period, and making bold bets on changing customer needs will ensure that we continue making a positive impact on the lives of millions of people while securing future growth,” said Aluwi.

GoLife, which will be closing on July 27, offers at-home services such as massages and cleaning. GoFood Festivals is the physical food court business, which experienced a significant downturn over the past few months. Gojek has been pivoting to accommodate new consumer habits, adding new areas such as groceries, which doubled since the beginning of the pandemic, and enhanced delivery or logistics services, which has grown 80%.

Earlier this month, Gojek announced that it raised over USD 3 billion in new funding, including new investors like Facebook and PayPal. The company claims to have over 170 million users in Indonesia and the rest of Southeast Asia. It will continue its collaborations with startups such as Halodoc and KitabBisa.