Tuban, East Java. Indonesian cigarette producer Gudang Garam (GGRM) has denied social media rumors of mass layoffs at its Tuban factory, calling the claims false and misleading.

A video circulated on Instagram account @rumpi_gosip alleged large-scale dismissals at one of the company’s plants in Tuban. The footage quickly went viral, fueling speculation of job cuts.

Merdeka Nusantara, Gudang Garam’s production partner in Tuban, dismissed the claim as a hoax. Adib Musyafa, head of human resources, stressed that no layoffs have taken place.

“The viral video did not come from Tuban. Conditions here are safe, and there are no layoffs,” Adib said on Sunday.

He noted that the Tuban factory continues to employ around 850 workers, 90 percent of whom are women, and all remain active. While the company regularly evaluates employee productivity, Adib said such assessments do not automatically lead to dismissals.

“We conduct periodic evaluations, but they do not necessarily result in layoffs. Performance is measured over specific periods,” he explained, urging the public to rely on official company sources for accurate information.

Gudang Garam, one of Indonesia’s largest tobacco firms, has faced tightening regulations, declining sales volumes, and shifting consumer demand. While denying the layoff rumors, the company continues to face scrutiny over its financial health in an increasingly challenging cigarette market. 

Shares of Gudang Garam closed 2.62 percent higher at Rp 8,800 on Thursday (Sept. 4, 2025), though the stock remains down 33.71 percent year to date.

The company’s earnings have come under pressure. In the first half of 2025, Gudang Garam reported a net profit of Rp 117.1 billion ($7.1 million), an 87.3 percent plunge compared to Rp 925.5 billion ($56.5 million) in the same period last year. Revenue also fell 11.29 percent to Rp 44.3 trillion from Rp 50 trillion.