Employee Efficiency Considered Realistic for GOTO Growing Healthier

GoTo, like other large companies, needs to adapt to ensure the Company's readiness to face the challenges ahead. The company must accelerate its efforts to become a financially independent business and grow sustainably in the long term. This is done, among others, by focusing on core services, namely on-demand, e-commerce and financial technology.

To support the acceleration of growth, since the beginning of the year GoTo has also evaluated the optimization of costs as a whole, including alignment of operational activities, integration of work processes, and renegotiation of various cooperation contracts. At the end of the second quarter of 2022, the Company managed to make structural cost savings of IDR 800 billion from various aspects of savings, such as technology, marketing and outsourcing.

“However, in order to navigate further in the midst of an increasingly challenging global economy, GoTo must focus on things that are within the company’s control. This includes taking the difficult decision to streamline 1,300 employees or around 12% of the total permanent employees of the GoTo Group,” said the GOTO's official in a statement on Friday (18/11/2022).

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According to Alfred's calculations, the restructuring of GOTO employees will reduce the huge cost burden in the future. Especially in the technology industry so far, the standard level of employee salaries is higher than other business sectors considering the need for a highly skilled workforce and the number is still scarce in the market.

It would be very positive, if GOTO could maximize future cost reductions while efficiently driving its revenue. Thus, operationally GOTO can finance itself without having to depend on financier subsidies. This creates healthier growth and financial position for the company.

Alfred said, it is no secret that the operational costs of startup companies such as GOTO, Shopee, Grab and many others still depend on investors' capital deposits. In the current global economic situation, these companies are required to no longer depend on investor subsidies.

“By seeing the potential of the Indonesian economy which has the opportunity to continue to grow positively in 2023, the efficiency strategy carried out by GOTO should have a positive impact on its fundamentals. Everyone now has an interest in GOTO, including investors, investment managers and others,” Alfred added.