Integration at Startup: Layoffs?

Startup companies, or as we often know them, "startups," are currently carrying out massive layoffs. Termination of Employment (PHK) means that workers and agencies are no longer working together. In this case, workers and employers are no longer working together. According to Labor Law No. 13 of 2003, Chapter I, Article 1, Paragraph (25), "termination of employment" is the termination of employment because of a certain matter that results in the end of the rights and obligations between the worker or laborer and the employer. There are many reasons why someone might lose their job, both from the agency and from themselves. (1) A request for resignation is made directly by the employee with the reason that he or she found a better and more profitable agency; (2) reaching retirement age means that employees will stop working according to the age policy set by the agency; (3) being fired due to negligence (some employees commit fraud like theft and fraud); (4) poor health; (5) to continue education; and (6) to be self-employed (Amaliah, 2020).

The layoff storm is expected to continue into 2023, which is only a matter of days. Many are guessing the reasons behind this massive layoff, but one thing we can see is that many startup companies have been established in the era of the COVID-19 pandemic so that the companies they build are digitally based. But now, in the new normal era, of course, there is an easing of mobility so that people can carry out activities while still implementing health protocols. Of course, the pandemic will not last; their inability to deal with changes in consumer society causes them to falter. Also, the world economy hasn't fully recovered yet, so big companies don't invest in new businesses because there's no guarantee they'll make money. Therefore, in order to maintain the company they have started, they have to reduce employee numbers so that the profit earned can keep the company running.

E-commerce in Indonesia certainly did not escape this layoff storm. Zenius, GoTo (Tokopedia), and Shopee Indonesia all laid off their employees; more than 2,000 people were laid off by these three big startups. They said the reason behind this layoff was to face challenges in the global world, so they had to lay off their employees.

In general, advanced start-up companies have higher profitability than early-stage companies. As a result, with high profit pressure, human efficiency must be implemented. The company hopes that if its employees are good at their jobs, it will spend less money and make more money.