PT GNI in Morowali Lays Off 1,900 Employees, Management Reveals Causes
PT Gunbuster Nickel Industry (GNI), which operates in North Morowali, Central Sulawesi, is reported to be carrying out a workforce adjustment. According to information received, the nickel processing and refining (smelter) company will carry out layoffs (PHK) of up to 1,900 employees.
In response, PT GNI management has spoken out, stating that the move is a decision taken after a thorough evaluation of the company’s business conditions, financial capacity, and current operational needs.
“The company understands that every decision relating to the workforce has an impact on employees and their families, the surrounding community and all stakeholders.”
“Therefore, the company views this step as a last resort after first considering and carrying out various efficiency efforts in various aspects of the company’s operations,” explained PT GNI management, quoting the company’s official website, as cited on Friday (14/8/2026).
The workforce adjustment decision was made after considering several conditions:
First, PT GNI is still facing a very difficult financial situation, reflected in the ongoing Suspension of Debt Payment Obligations (PKPU) process. This condition has severely limited the company’s financial capacity, including in meeting various operational needs.
Second, under these conditions, two of the company’s three smelters have currently ceased operations. To maintain business activities and reduce the impact on employees, the company continues to strive to maintain the operation of one smelter and its supporting power plant (PLTU) in line with requirements.
Third, amid the company’s ongoing losses, reducing operational costs is an important step to maintain business continuity. This effort is being made so that the company can continue to operate while maintaining opportunities for recovery in the future.
Fourth, labour costs are one of the main components of the company’s operational costs. With operational conditions currently far more limited, the company needs to adjust the number of workers to match operational needs and the company’s financial capacity.
Fifth, before taking the workforce adjustment step, the company has carried out various efficiency efforts, including reducing operational costs in various areas, postponing recruitment, reducing overtime, adjusting working hours, transferring employees, and various other cost-saving measures.
Sixth, with a workforce of around 6,300 people, while the company’s operations are currently focused only on one smelter and its supporting power plant, adjusting the number of workers is a necessary step. “This adjustment aims to align the number of workers with actual operational needs, so that the company can maintain its business activities effectively and have the opportunity to recover in the future,” management stated.
Therefore, based on the results of the evaluation, the company is currently implementing a workforce adjustment as part of efforts to align the number of workers with the company’s operational needs.
“This process is estimated to affect around 1,900 employees and will be carried out in stages based on the results of the evaluation and the company’s operational needs.”
“The company affirms that the entire workforce adjustment process will be carried out in accordance with the provisions of the labour laws and regulations applicable in Indonesia. The settlement of the rights of affected employees refers to the provisions of the applicable laws and regulations,” management explained.