September 10, 2025 | 07:09 pm
TEMPO.CO, Jakarta - PT Gudang Garam Tbk has denied rumors of mass layoffs after a video circulated on social media last Saturday showing hundreds of employees gathered in an auditorium.
The company’s management clarified that the video captured the departure of 309 workers who were leaving through normal retirement, voluntary early retirement, and the end of their employment contracts.
"What happened was not a mass layoff but the departure of 309 employees voluntarily and in accordance with the terms of their employment contracts," said PT Gudang Garam Corporate Secretary Heru Budiman in a statement to the Indonesia Stock Exchange on Tuesday, September 9, 2025.
Heru stated that the departure of these employees did not affect the cigarette company's continuity, production operations, or distribution. He affirmed that there were no legal issues or material impact on the company's financial condition. "All operational activities continue as usual. This incident did not create a significant impact on the company's business," he said.
In addition, Heru mentioned that all the rights of the departing employees were fulfilled according to regulations. He added that amid challenges like high excise taxes and illegal products, the company has adapted by launching several new product variants in 2024. The company remains committed to innovation to ensure its products meet consumer needs.
The video that sparked the rumors, which was uploaded by the @info_loker_kediri Instagram account on Saturday, September 6, 2025, showed hundreds of employees in their uniforms embracing each other. The poignant atmosphere led many to assume the employees had been laid off. Heru reiterated, "The employee departure process was carried out appropriately and voluntarily, without creating legal or financial implications for the company."
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