Indonesian cigarette producer PT Gudang Garam has strongly denied claims of mass layoffs at its Kediri and Tuban factories. Over the weekend, a viral video showing hundreds of PT Gudang Garam Tbk employees shaking hands in what appeared to be an emotional farewell sparked layoff rumors. Adib Musyafa, head of human resources at the Tuban plant, called those rumors false and the video misleading, confirming that all 850 employees remain active, and no layoffs have occurred. He clarified that routine performance evaluations do not automatically lead to dismissals, urging the public to rely on official company statements.
The Indonesian Trade Union Confederation (KSPI) picked up on the video and said it was verifying the reports and warned of potential ripple effects across the supply chain, which added to the validity of the rumor.
The company reportedly saw an 82% drop in net profit in 2024 and its stock drop 33.7% this year, pointing to the financial pressures of higher excise taxes, falling sales, and competition from illegal cigarettes, but insists that mass workforce reductions have not taken place.
