- Octopus has failed to pay employee salaries for months.
- Acquisition talks with other firms stalled as Octopus struggled to raise funds.
- Mismanagement, excessive hiring, and lack of financial transparency led to the company’s downfall.
Salaries unpaid for months
Indonesian waste management startup Octopus finds itself in deep trouble, having failed to pay employee salaries for several months.
CEO and co-founder Moehammad Ichsan has been unresponsive to staff since mid-May, despite previous assurances that payments would be made.
Octopus had explored potential acquisitions by other waste treatment firms, including Waste4Change and Plastic Finance, but no offers materialized.
The company managed to raise a meager US$24,500 by selling off assets, covering only 5% of the total salaries owed.
Mismanagement leads to downfall
Sources allege that excessive hiring and overcompensation led to Octopus’ cash depletion. The workforce increased by over 400% from July 2022 to July 2023, some employees taking on overlapping roles.
Management never shared financial data staff, hindering budget implementation.
The salary delays have significantly disrupted employees’ lives, some resorting to extreme measures to survive.
Clinging to hope, employees are now pursuing legal action against Ichsan and the company, but faith in the founders has dwindled.
To read the original article: https://www.techinasia.com/octopus-ceo-staff-unpaid-wages-stalled-acquisition
