There has been a wave of layoffs in the Indonesian textile industry. This has been due to a decrease in demand, both domestic and foreign demand. Several sectors have been negatively affected.

Almost 150 out of 233 textile companies have reduced the number of employees. In the digital industry, the wave of layoffs occurred due to a decrease in people's consumption patterns that had occurred since economic activity returned to normal.These are cyclical challenges. Even though the economy is growing fast, there are some that are experiencing a slowdown.

The storm of layoffs, especially in technology companies, has not subsided.Throughout 2022, there have been some 20 technology companies in Indonesia that have streamlined their employees with mass layoffs. Most recently, an e-commerce platform laid off 200 of its employees on the pretext of responding to global economic challenges and the rapid changes in digital business. A giant technology company has laid off 12 percent of its total employees or as many as 1,300 people.

The global crisis as a result of the impact of the Russian-Ukrainian war is being felt by the textile industry in Indonesia.Indonesia’s textile exports have dropped dramatically after the Russia-Ukraine war. The loss of this export market has made textile companies in Indonesia overstock.