The ride-hailing and e-commerce company and money-losing peers Grab Holdings Ltd. and Sea Ltd. are trying to convince investors of their long-term prospects just as the tech industry is grappling with geopolitical tensions and a potential global recession. Jakarta-based GoTo, which for years enjoyed unparalleled growth, has cut 12% of its workforce to reach profitability, joining a wave of layoffs rocking Silicon Valley giants and startups.
Indonesia’s GoTo Group brought forward its profitability targets by a year, as Southeast Asia’s regional tech giants race to reverse losses and win over investors after a slump in stock prices.
GoTo said it expects adjusted earnings before interest, taxes, depreciation and amortization to turn positive in the fourth quarter of 2023, about a year ahead of its previous target. In November, its chief executive officer said on an earnings call that GoTo expected to reach that around late 2024 at the earliest.
