TikTok has confirmed a fresh round of layoffs at Tokopedia as the company reorganises its research and development (R&D) operations, making it the latest Southeast Asian e-commerce player to trim its workforce amid an industry-wide push to improve efficiency.
The move follows similar workforce reductions at Singapore-headquartered Lazada and Sea Ltd.’s Shopee.
TikTok did not disclose the number of employees affected at Tokopedia but said the restructuring is intended to better align its engineering resources with the company’s long-term priorities.
“We are aligning our R&D organisation around areas that can drive sustainable long-term growth for our business, creator community, and sellers on our platform,” a TikTok spokesperson said in a statement. “This was not an easy decision, and we are focused on supporting affected colleagues throughout the transition.”
The spokesperson added that the company would continue investing in Tokopedia to improve the platform for users and sellers while supporting the development of Indonesia’s e-commerce ecosystem.
The statement follows reports circulating on social media that Tokopedia announced another round of layoffs during an internal town hall on Wednesday (July 1), affecting employees across several teams.
According to local reports, the company cut about 90% of the affected business unit’s workforce, leaving roughly 127 employees. DealStreetAsia could not independently verify the figure.
The latest restructuring adds to a series of workforce reductions since TikTok acquired a controlling stake in Tokopedia from GoTo Group in late 2023 as part of a deal to revive TikTok Shop’s operations in Indonesia.
Last year, TikTok laid off Tokopedia employees in two rounds.
Last year, TikTok laid off Tokopedia employees in two rounds, with the reductions taking effect in July and August, affecting an estimated 1,070 employees. At the time, the company said the move was aimed at strengthening its organisational structure and supporting its long-term business strategy.
Shopee, Lazada
The move comes shortly after similar workforce reductions at other major e-commerce platforms in the region over the past month.
In June, Shopee cut hundreds of developer roles globally, equivalent to about 8% of its developer workforce, according to media reports. The layoffs affected software engineers in several markets, including Singapore, as the company sharpened its focus on artificial intelligence.
Shopee said at the time that it periodically adjusts headcount based on business and operational priorities and would support affected employees through the transition.
Last week, Lazada laid off an undisclosed number of employees across several markets in the region as part of what it described as a regular review of its business structure. The company did not specify how many employees were affected or identify the countries involved.
In a statement cited by regional media, Lazada said it periodically reviews its organisational structure to remain agile and better respond to changing business needs and customer expectations. The company added that it is committed to supporting employees affected by the exercise throughout the transition.
Lazada South East Asia, the regional e-commerce arm of China’s Alibaba, had narrowed its operating losses in FY2025 after cutting spending across key cost lines. Lazada’s operating loss narrowed to $491.4 million, down 50.4% from $991.2 million in FY2024. The improvement was largely driven by lower spending. Advertising expenses fell 41% to $285.7 million, while employee compensation declined 32.4% to $79.5 million, indicating tighter cost discipline. The figures reflect the performance of Lazada’s Singapore-based regional entity—and its eight subsidiaries in Hong Kong, the Philippines, Singapore, Malaysia, Thailand, and Vietnam—and not the operations of its entire business in Asia.
The succession of layoffs at Tokopedia, Lazada and Shopee suggests Southeast Asia’s leading e-commerce platforms remain focused on streamlining operations despite stabilising demand for online shopping.
Having largely moved beyond the pandemic-era race for growth, companies are increasingly prioritising productivity, organisational efficiency and long-term profitability while continuing to invest in strategic areas such as technology and artificial intelligence.
