Alodokter, a leading digital health platform in Indonesia, is facing backlash from its employees after a controversial round of layoffs. The company, which had previously reported strong growth, announced the layoffs under the guise of improving "efficiency," but this move has not been well received by staff.

Employees have voiced concerns that the decision to lay off workers contradicts the company’s mission. They allege that Alodokter’s management, led by CEO and co-founder Suci Arumsari, has abandoned the values that the company was built on. According to a statement from the affected employees, "The layoffs were supposed to address efficiency losses, but they don’t reflect the values embedded in Alodokter’s vision."

Adding fuel to the fire, Alodokter is simultaneously recruiting new staff members, raising suspicions that the company might not be struggling financially as it claimed. The workers argue that this raises questions about the true motives behind the layoffs. "While the company claimed to be experiencing losses, they had previously shared public reports showing significant profits. Now, those reports have mysteriously disappeared from their website," one employee said.

The company’s decision to withhold severance pay has further intensified the controversy. According to Indonesian labor law, severance pay is a legal obligation for companies terminating employees. Alodokter, however, has failed to meet these requirements, leaving employees frustrated and demanding accountability.

Employees also criticized the informal manner in which the company handled the situation. A meeting between management and the affected workers was held in a hallway outside the company’s main lobby, raising doubts about the seriousness of the dialogue. Notably, the absence of HR leaders at the meeting left many employees feeling neglected and unheard.

Alodokter has not yet provided any public comments on the situation, but the company is under increasing pressure to address the concerns raised by its workforce. This incident is not the first time an Indonesian health tech company has faced challenges related to layoffs. Last year, Halodoc, another health tech platform, made a similar move, citing "rightsizing" and adapting to market conditions. Halodoc, which had received investment from Astra Digital, explained the move as necessary to streamline operations.

Halodoc’s approach was more focused on adapting to market changes, according to their Vice President of Government Relations, Adeline Hindarto. "As a technology-driven company in the healthcare sector, agility and adaptability have always been key to our growth. However, in the current market environment, more aggressive measures are required."

In contrast, Alodokter’s layoffs seem to have caught employees by surprise, especially given the company's previous claims of success. While Halodoc handled its layoffs with more transparency, Alodokter’s decision to lay off staff without proper consultation and its refusal to provide severance pay have resulted in an outcry.

As the situation unfolds, it remains to be seen how Alodokter will manage the fallout from these layoffs and whether the company will make changes to its handling of labor relations. With employee dissatisfaction growing and public attention on the company, Alodokter’s next steps could have significant implications for its reputation and future growth.

BLOOMBERGTECHNOZ