Jakarta-based open finance API platform Ayoconnect has laid off 10% of its workforce in Indonesia in a bid to have a leaner structure as part of efforts to reach profitability, the company said in a statement on Thursday.
“Ayoconnect has decided to reduce 10% of its workforce in Indonesia. The decision was made after carefully aligning objectives for 2023 as part of a strategic effort to create profitable/self-sustaining business lines by optimising divisions and transitioning to a leaner organisational structure,” a company spokesperson said.
Ayoconnect did not reveal the number of employees impacted but DealStreetAsia has learnt that it employed more than 200 personnel previously.
The company said it is committed to providing “ample support” during the transition by offering appropriate severance pay, continued medical insurance for the employee’s entire family for six months, and an outplacement programme to help affected employees explore new opportunities.
“We aim to position Ayoconnect for a stronger future by remaining agile and responsive to market needs,” the spokesperson said.
Waves of layoffs among tech companies have been happening in Indonesia in the past year due to reasons ranging from uncertain macroeconomic conditions to a more demanding profitability target imposed by investors.
Ayoconnect was founded in 2016 by Jakob Rost, Chiragh Kirpalani, and Adi Vora. According to its website, Ayoconnect has 200 companies including banks, retailers, e-commerce, fintech, and e-wallets as its clients.
According to DealStreetAsia’s DATA VANTAGE, Ayoconnect has raised $46.79 million in funding to date. The company’s last known funding round was a $13 million Series B extension led by SIG Venture Capital in October 2022.