The e-commerce company JD.ID conducted layoffs affecting approximately 200 employees, or 30% of its workforce, in mid-December 2022.
This was confirmed by JD.ID's Head of Corporate Communications & Public Affairs, Setya Yudha Indraswara.
"The company needs to take adaptive measures to address the challenges of rapidly changing business conditions. One step taken by management is streamlining the company to adapt to these changes," said Setya in a press release on Tuesday (December 13, 2022).
"JD.ID remains committed to providing various forms of support to the 30 percent of employees affected by the layoffs, including insurance benefits and talent promotion support. JD.ID will also uphold all other rights in accordance with applicable regulations and laws," he added.
JD.ID management believes that the current startup and e-commerce business is facing challenges from rising global central bank interest rates and geopolitical turmoil between Russia and Ukraine.
"Especially since the e-commerce business has proliferated, making business competition and product campaigns unavoidable," said Setya.
According to SimilarWeb data compiled by iPrice, the number of visitors to the JD.ID website has been steadily declining in recent quarters, pressured by the growth of competitors such as Shopee and Tokopedia.
In Q1 2020, the JD.ID website averaged 6.1 million visits per month. During the pandemic in Q2 2020, visitor numbers increased significantly, but subsequently decreased until reaching their lowest point in Q2 2022, as shown in the graph.
On a slightly positive note, despite the significant decline, in Q2 2022 JD.ID remained among the top 10 e-commerce sites with the most visitors in Indonesia.
"JD.ID continues to focus on improving its business systems and cash flow to achieve positive margins," concluded Setya.