2 Indonesian start-up firms lay off employees

Two Indonesian start-up companies, namely Fintek Karya Nusantara (Finarya) or LinkAja and Zona Edukasi Nusantara or Zenius, have cut their workforces. Zenius laid off 25% of its workforce or about 200 people, while LinkAja hasn’t confirmed the number of affected employees.

Both LinkAja and Zenius are experiencing serious internal problems which forced them to lay off their employees. 

LinkAja Head of Corporate Secretary Group Reka Sadewo as reported by Kompas explained that the decision was agreed upon because the company seeks to reorganise its human resources (HR). 

"This HR adjustment is made on the basis of the relevance of the HR function to the company's current business needs and focus," Reka explained.

“As a fast-growing start-up company, LinkAja is expected to continue to be agile and adaptive in making business adjustments to ensure healthy, positive and optimal growth. Responding to this challenge, LinkAja will make significant changes, especially regarding the company's business focus and objectives, one of which is the reorganisation of human resources."

According to Reka, the decision was taken by taking into consideration the company's stakeholders, including employees. The layoff will be carried out with due observance of applicable laws and the principles of good corporate governance.

Separately, Zenius said the reason behind the layoff was because the company is experiencing the worst macro-economic conditions in the last decades.

Zenius, as quoted in Kompas, explained, “To adapt to the dynamic macro-economic conditions that affect the industry, Zenius needs to consolidate and synergise business processes to ensure sustainability. After going through a comprehensive review and evaluation, Zenius announced that more than 200 of its employees had to leave."

Zenius provides several options to help affected employees through the transition period. First, the company will extend their health insurance until 30 September 2022, including for employees' family members.

Meanwhile, layoff regulations will take into account applicable legal provisions, including the amount of severance pay that workers should receive.

Finally, to help affected employees get new opportunities, Zenius will share their personal data with other companies or educational institutions with their consent. 

Zenius also suggested that the content creator team apply for the Tentor position at Primagama branches. "During the transition process, we are committed to ensuring that all rights and support needed by affected employees are properly met," Zenius stated.