eFishery Cut 90% Employee? Victims of chaotic drama are the employees???????
Yutaka Tokunaga (徳永 裕)
CEO of Timedoor | Investor of Ango Ventures | IT Consultant | IT Education for Kids | Website, Mobile App, AI Development | LPK Bahasa Jepang | Japanese Global Entrepreneur Award 2024 | Challenger Forever ????????????
eFishery Faces Mass Layoffs and Possible Liquidation Amid Fraud Scandal ??
Indonesia's startup ecosystem has been rocked again as eFishery, the agritech unicorn once hailed as a beacon of innovation, faces mass layoffs and potential liquidation. The scandal, which involved inflating revenue figures by over 75%, has sent shockwaves through the industry. While investors are weighing their options, employees are pushing back against what they see as unfair treatment. Is cutting 90% of employees the right move, or should eFishery take responsibility and find alternative solutions?
Mass Layoffs and Employee Backlash ????
As eFishery fights for survival, the company has begun laying off over 1,000 employees—90% of its workforce—according to a Bloomberg report. The decision has sparked an uproar among staff, with a newly formed labor union rallying against the job cuts and urging the company to resume operations.
On Thursday, dozens of eFishery labor union members rallied outside the company’s Bandung office, expressing concerns about their future. In a public statement, the union criticized the “negative and unbalanced” media coverage surrounding the alleged fraud, arguing that the integrity of most employees remains intact.
The union claims:
The labor group asserts that eFishery’s operational business still exceeds $184 million and insists that management should explore business reassessment rather than mass terminations. They demand transparency and fairness, urging the company to publicly clarify that the majority of employees were not complicit in financial fraud.?
Despite these efforts, eFishery's board, advised by FTI Consulting Singapore, is considering liquidation or restructuring, with a decision expected soon. ??
The Human Cost of Corporate Misconduct ??
Financial fraud impacts more than just investors—employees are the true victims. Many dedicated years to eFishery, believing in its vision, only to face sudden unemployment and reputational damage due to leadership’s unethical decisions.
Consequence of a Non-Ethical Unicorn Dream ????
Startups need transparency and accountability to ensure sustainable success. Indonesia’s tech industry must learn from this failure and focus on real, ethical growth instead of chasing inflated valuations.
The pursuit of unicorn status is exciting, but without integrity, it can lead to disaster. To restore trust, Indonesia’s startup ecosystem must prioritize ethical leadership over short-term gains.
Can Indonesia’s startups rebuild credibility? Let’s discuss. ????
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Angel Investor | Logistics Industry Leader | C-Level Executive | 20+ Years of Growth & Innovation | Business Transformation | Tech-Driven Strategist | Results-Oriented
3 周In early 2024, eFishery carried out mass layoffs as part of a cost-efficiency strategy to ensure long-term sustainability. Despite achieving unicorn status, the company is now prioritizing profitability by optimizing operations and exploring new revenue streams. Key Challenges 1. Market Adoption: Encouraging traditional farmers to embrace digital aquaculture. 2. Rising Feed Costs: Affecting both farmers and operational expenses. 3. Economic Pressures: Supply chain disruptions and macroeconomic instability. 4. Future Roadmap eFishery remains committed to empowering fish farmers through: Expanding fintech services for better financial access, Enhancing AI-driven feed management to improve efficiency, Strengthening market presence locally and globally.
Sustainability specialist/Teacher Ops & Trainer/Sr. Academic Coach at Cakap/TESOL Certified teacher/Test Prep Specialist
1 个月The crooked ran with the money untouched? Those 90% deserved justice, or home address to those who cost them
People Partner & Facilitator | HR, Leadership, Mindset Development | Help organization to build High Performance Culture
1 个月Hope this would be a lesson learned from other startups to consider growing step by step while strengthening their integrity and accountability foundation, rather than taking a big leap while the foundation is still weak. Thanks for sharing Yutaka San??
"Results-Oriented Manager with expertise in Startups, E-commerce, Logistics & Supply Chain | Pioneer in Revenue Growth & Product Development | Strategic Partnerships & Stakeholder Management | Let’s Connect!"
1 个月In my opinion, the eFishery crisis is a stark wake-up call for Indonesia’s startup ecosystem, exposing the dangers of unchecked financial manipulation and reckless growth ambitions. The company’s alleged inflation of revenues by nearly $600 million—with over 75% of reported figures fabricated—has led to the elimination of more than 1,000 jobs, approximately 90% of its workforce. ?? This situation underscores the urgent need for stricter financial oversight, independent board governance, and robust whistleblower protections to ensure transparency and ethical leadership. Investors must prioritize genuine financial health over inflated valuations, while regulators should mandate independent audits and enforce stringent legal consequences for fraudulent practices. ?? Additionally, startups should adopt sustainable growth models, focusing on profitability and long-term value rather than vanity metrics. Without these critical reforms, trust in Indonesia’s startup ecosystem will continue to erode, making future collapses inevitable. ??