ByteDance to layoffs staff at Indonesian e-commerce unit (Private:BDNCE)

Update: The story was updated with a statement from ByteDance.

ByteDance (BDNCE) confirmed it will lay off some employees at its Indonesian e-commerce units, Tokopedia and ShopTokopedia.

The move comes after the TikTok parent completed a transaction in which it committed to invest over $1.5B in a joint venture with Indonesia-based GoTo’s e-commerce platform Tokopedia, which it would control.

The efforts were aimed at helping the Chinese company resume TikTok’s shopping app service in the country. In February, GoTo’s CEO Patrick Walujo said that GoTo and partner TikTok would fully adhere to the country’s rules, which bans in-app transactions on social media, within a month and a half.

ByteDance did not disclose how many people would be affected. However, Bloomberg had earlier reported that 450 jobs would be cut, as per a report from Reuters.

“Following the combination of TikTok and Tokopedia, we identified areas to strengthen our organization and better align our teams with company goals. As a result, we will make necessary adjustments to internal structure as part of our strategy for continued growth,” said a ByteDance spokesperson in an emailed statement to Seeking Alpha.

The spokesperson noted that the company aims to support employees throughout the transition.

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