Efficiency: The Primary Reason for Layoffs in Indonesia in 2025

Employment

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Nabilah Muhamad 08/12/2025 18:13 WIB

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According to a Populix survey, the majority of employees laid off in Indonesia were dismissed due to efficiency or workforce reduction.

Reasons for Termination of Employment Communicated by Companies to Employees in Indonesia (November 2025)

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Efficiency: The Primary Reason for Layoffs in Indonesia in 2025

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Reasons for Termination of Employment Communicated by Companies to Employees in Indonesia (November 2025)

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According to a Populix survey, 62% of the total 945 worker respondents in Indonesia have experienced layoffs in 2025.

Among those who have been laid off, the majority, or 38%, were dismissed because the company was undergoing efficiency measures or workforce reduction.

Another 34% were laid off because the company was experiencing financial difficulties.

"This indicates that business reasons still dominate layoff experiences among workers," Populix said in its report, Study of Perceptions and Challenges Regarding Layoffs.

There were also workers who were laid off because their performance did not meet expectations (18%), the company no longer needed a specific position (17%), and the company went bankrupt or ceased operations (17%).

A small portion of others were dismissed for committing serious misconduct (14%), and due to the company undergoing a merger or acquisition (7%).

Populix conducted this survey online via the KitaLulus website in November 2025. The survey involved 945 worker and job seeker respondents, which was narrowed down to 588 respondents who had experienced layoffs.

Generally, respondents consisted of 67% men and 33% women. The majority, or 59% of respondents, were classified as Gen Z (18-27 years old), 37% as Millennials (28-43 years old), and 4% as Gen X (44-55 years old).

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."