JAKARTA – Ecommerce platform Shopee has shut down claims its Indonesia business is gearing up for mass layoffs after word made rounds on social media, a local news outlet reported.

Shopee Indonesia is instead transferring staff to the cities of Solo and Yogyakarta – under a relocation scheme in place since 2023 – to handle customer service, according to Radynal Nataprawira, the company’s head of public affairs in Indonesia.

“Some team members are willing to be relocated,” the official said, as quoted by Indonesian media outlet Tempo.

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Shopee faced resistance from workers over relocation scheme

Shopee Indonesia faced pushback from an undisclosed number of employees who reportedly refused to be transferred to the new locations. The employees in question were said to have resigned as a result of the staffing changes.

Radynal clarified the departing employees would receive support from the Shopee management as stipulated in Indonesia’s labour laws.

“For other team members who do not continue the relocation, we will ensure that they receive support in accordance with their rights and applicable government regulations, as well as other support facilities such as insurance for the next three months,” Radynal said.

In March 2023, Shopee Indonesia laid off an estimated 200 to 500 staff members, primarily from the customer service division, as part of a wider effort to streamline operations.

The Singapore-based ecommerce business had shed over 7,000 jobs and cut spending since 2022 in an effort to shore up profits. The company later said it no longer expected any major shifts regarding staffing, The Straits Times reported.

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Shopee 'creating equal employment opportunities'

The relocation scheme continues as part of Shopee’s aim to create equal opportunities for workers. The timing of the transfer was based on the “readiness of facilities and the development of human resources in the city,” Tempo reported.

“With operational offices spread across several regions, Shopee hopes to contribute to the creation of a digital talent development ecosystem, while providing employment opportunities in the regions,” Radynal said.

Last week, Tech in Asia reported hundreds of jobs were “affected” by job cuts amid the relocation plans.