Staff levels drop comes as company closes 47 outlets
Over 2,200 employees at KFC Indonesia have lost their jobs following the closure of 47 outlets amid the company's financial woes.
In KFC's latest financial report, the company revealed that its total headcount was down to 13,715 employees as of 30 September 2024. It previously had 15,989 employees by the end of last year.
It also had 715 restaurant outlets left by the end of September, down from 762 by the end of December 2023.
The closure of KFC Indonesia's outlets comes as the company reported a net loss of IDR557.08 billion (over US$36 million) as of the third quarter of 2024, Vietnam News Agency reported.
KFC Indonesia's owner, Gelael and Salim Group under PT Fast Food Indonesia Tbk (FAST), attributed the decline to the sharp drop in food and beverage sales, which were down 22.4% annually.
According to FAST's leaders, the downturns were the result of the prolonged negative impacts of the COVID-19 pandemic.
The ongoing crisis in the Middle East has also worsened current market conditions, the leaders added, as reported by VNA.
A total of 52,993 workers have been laid off in Indonesia as of October 1, according to the latest data from the country's Ministry of Manpower.
The manufacturing sector saw the highest number of layoffs with 24,013 workers. This is followed by the services sector (12,853), and then the agriculture, forestry, and fisheries sector (3,997).
Indah Anggoro Putri, Director General of Industrial Relations and Social Security for Workers, told Tempo that the layoffs were due to several factors, including a decline in exports and high domestic imports.
"In essence, because companies are unable to survive in business competition, exports decreased due to the wavering economic situations in other countries, as well as global challenges such as war and the flood of imported goods into the domestic market," Indah told the news outlet.
