8 Reasons for Indonesian Companies' Layoffs in the First Half of 2025

Employment

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Nabilah Muhamad 05/06/2025 19:20 WIB

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According to a Jobstreet survey, 4% of companies in Indonesia plan to conduct layoffs in the first half of 2025. The primary reason cited for these layoffs is to reduce operational costs.

8 Reasons for Indonesian Companies Planning Layoffs in the First Half of 2025

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8 Reasons for Indonesian Companies Planning Layoffs in the First Half of 2025

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According to a Jobstreet survey, 4% of companies in Indonesia plan to reduce their workforce or conduct layoffs (PHK) in the first half of 2025.

Of this group, the majority, or 77%, plan layoffs to reduce operational costs.

Others also plan layoffs due to anticipated poor economic conditions (48%); implementing a flexible employment model (41%); and employee restructuring (38%).

Other companies plan to reduce employees because they are automating jobs with technology (37%); outsourcing (16%), mergers or acquisitions (12%), and relocating some company activities overseas (3%).

This survey also found that 51% of companies in Indonesia do not plan to increase their workforce and choose to maintain employee stability in the first half of 2025. This is done by retaining employees or freezing recruitment.

Jobstreet obtained this data from a survey of 1,273 recruitment staff from small, medium, and large companies in Indonesia, with diverse business fields or industrial sectors.

Data collection was conducted online in September-October 2024.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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8 Reasons for Indonesian Companies' Layoffs in the First Half of 2025

8 Reasons for Indonesian Companies' Layoffs in the First Half of 2025

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8 Reasons for Indonesian Companies' Layoffs in the First Half of 2025

8 Reasons for Indonesian Companies' Layoffs in the First Half of 2025

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Majority of Indonesian Migrant Workers Depart at a Young Age

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