Widespread Layoff Issues, Majority of Indonesian Startups Have Fewer Than 50 Employees

In the first few months of 2022, a number of Indonesian startups experienced a wave of layoffs.

Education startup Zenius, for example, laid off over 200 employees in May 2022. "To adapt to the dynamic macroeconomic conditions affecting the industry, Zenius is carrying out business process consolidation and synergy to ensure sustainability," Zenius explained in its official statement received by *Katadata.co.id* on Tuesday (24/5/2022).

Similar layoffs were also conducted by startups TaniHub and LinkAja. Meanwhile, startups UangTeman and Fabelio reportedly experienced difficulties in paying employee salaries.

Previously, the Indonesian Information and Communication Technology Creative Industry Society (MIKTI) released a research report titled *Mapping & Database Startup Indonesia 2021*, which included information on the number of startup employees.

According to MIKTI data, until 2021 there were 1,190 startups in Indonesia. The majority, or 72.5%, had fewer than 50 employees.

Furthermore, 19.3% had 50-200 employees, 5.6% had 201-500 employees, and only 2.6% of Indonesian startups had more than 500 employees.

Another interesting finding from MIKTI is that 49.5% of startup employees were Generation Z (aged 17-25) in 2021. The majority, or 80.8%, of these employees had a bachelor's degree.

(See also: Global Startup Funding Predicted to Shrink 19% in Q2 2022)