Indonesian warehouse and logistics player Shipper has laid off 65 employees or 8% of its workforce in anticipation of uncertain macroeconomic conditions in 2023, the company said in a statement on Monday.
Shipper co-founder and CEO Phil Opamuratawongse called the decision “extremely difficult” but “necessary” to help the company become more agile and accelerate sustainable growth.
The company first announced the decision on Dec. 8, according to the statement.
“This tough decision is part of the company’s optimisation plan after a thorough assessment of our business process as we further anticipate the uncertainties in the macroeconomic condition in the upcoming year,” Opamuratawongse said.
The affected employees will receive a compensation package, an outplacement programme, and other support from the company to secure new opportunities.
Despite the layoff move, Shipper remains optimistic about the opportunities for e-commerce growth in Indonesia and its position in the logistics sector.
DealStreetAsia reported recently that Shipper received commitments worth tens of millions of dollars in an ongoing round. Sources also mentioned about the company’s possible plan to forge a partnership with Pintek to expand its fintech capabilities.
“We believe that continuing to work efficiently, backed by a transparent and streamlined logistics process will become increasingly necessary to support that growth and we will come out of this global economic challenge more resilient than before,” Opamuratawongse said.
Shipper has joined a string of Indonesian and Southeast Asian startups that have cut down staff to reduce costs to stay afloat as the business landscape turns rough.
Indonesian agritech startup Sayurbox also announced recently that it laid off 40 employees or about 5% of its team members. Before that, other companies such as Ruangguru, GoTo, and Shopee, have also cut their headcount for similar reasons.