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TikTok Shop and Tokopedia are now under ByteDance, with hundreds of employees facing mass layoffs starting July 2025. What’s the impact?

01 Jun 2025 2 min

Indonesia’s e-commerce industry is being rocked by shocking news. TikTok Shop and Tokopedia, two e-commerce giants now under the same ByteDance management, have announced plans for mass layoffs affecting hundreds of employees. This move comes as a response to the merger and acquisition process that has reshaped the country’s e-commerce landscape.

ByteDance, the parent company of the popular TikTok app, officially acquired a 75% stake in Tokopedia at the end of 2023. With this step, ByteDance merged the strengths of two of Indonesia’s largest e-commerce platforms—TikTok Shop and Tokopedia—into a single business ecosystem. The goal: to strengthen ByteDance’s position in the highly competitive market, especially against rivals like Shopee and Lazada.

Following the merger, the combined workforce of TikTok Shop and Tokopedia reached around 5,000 people. However, the planned mass layoffs in July 2025 will cut this number by half, down to about 2,500 employees. The layoffs are expected to affect many divisions, including logistics, operations, marketing, and warehousing.

TikTok’s management stated that adjusting the workforce is a strategic move to strengthen the organization and improve operational efficiency amid fierce competition in Indonesia’s e-commerce sector. This restructuring aims to synchronize TikTok Shop and Tokopedia operations while keeping costs competitive on a global scale.

While TikTok management has not provided further details, internal sources indicate that such restructuring is unavoidable following the major acquisition and the integration of systems between the two e-commerce platforms.

The mass layoff plan will not only directly impact thousands of employees but also raise concerns among Indonesia’s digital workforce. With growing competition, workforce efficiency has become a main strategy for maintaining profitability. However, this step has sparked various reactions from observers and worker associations. Many question the sustainability and job stability in the tech industry, especially when major expansion is accompanied by waves of layoffs.

The Tokopedia acquisition by ByteDance has caught the attention of the Indonesian Competition Commission (KPPU). The agency is now investigating potential monopoly practices, as the merger of these two giants will significantly increase market concentration. KPPU notes the potential risk of unhealthy business competition, which could harm other market players, including SMEs and consumers.

If evidence of monopoly or market abuse emerges, ByteDance could face sanctions and regulatory corrections. For now, KPPU continues to study the business structure and practices post-merger to ensure there are no regulatory violations.

After the acquisition and merger process, all e-commerce activities and strategies of Tokopedia and TikTok Shop in Indonesia are now fully under ByteDance’s control. While the Tokopedia brand is retained for its value, all strategic decisions, efficiency moves, and HR policies are in the hands of TikTok management.

This move demonstrates a major consolidation reshaping the face of the national e-commerce industry. The integration also strengthens ByteDance’s position against global competitors already well established in Indonesia.

Amid waves of layoffs, operational efficiency efforts, and monopoly concerns, the future of Indonesia’s marketplace industry will be determined by the ability to adapt to change and meet consumer needs. The TikTok Shop and Tokopedia merger opens a new chapter in national e-commerce competition, but it also brings social and economic risks that all stakeholders must address.

Going forward, regulatory oversight from agencies like KPPU and adaptation by business players will be key to keeping the e-commerce ecosystem healthy, innovative, and competitive.