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Update: The story has been updated with a statement from ByteDance.
ByteDance (BDNCE) has confirmed that it will lay off some employees at its Indonesian e-commerce units Tokopedia and ShopTokopedia.
The move comes after TikTok's parent complete The transaction in which it was committed To invest more than $1.5 billion in a joint venture with Indonesia-based GoTo e-commerce platform Tokopedia, which it will control.
These efforts aim to help the Chinese company resume its TikTok shopping app service in the country. In February, GoTo CEO Patrick Walujo said GoTo and its partner TikTok would fully comply with the country's rules, which ban in-app transactions on social media, within a month and a half.
ByteDance did not reveal how many people would be affected. However, Bloomberg had previously reported that 450 jobs would be cut, according to A a report From Reuters.
“Following the integration of TikTok and Tokopedia, we have identified areas to strengthen our organization and better align our teams with the company's goals. As a result, we will make the necessary adjustments to the internal structure as part of our continued growth strategy,” ByteDance said. The spokesperson said in a statement emailed to Seeking Alpha.
The spokesman indicated that the company aims to support employees throughout the transitional period.
