Grab Cuts 1,000 Jobs, Its Largest Layoff Round Since The Pandemic

(CTN News) – There are over 1,000 jobs to be cut at Singapore-based Grab Holdings, as the company’s CEO announced on Tuesday, in an attempt to reduce costs and restructure the company in a competitive environment.

The CEO of the ride-hailing and food delivery app operator, Tan Anthony, explained that the layoffs are a “painful but necessary step” that the company must take in order to remain competitive in the future in an email sent to its staff.

In order to achieve our long-term strategic goals, the primary focus of this exercise is to strategically reorganize ourselves, in order to move faster, work smarter, and rebalance our resources across our portfolio in order to meet our longer-term objectives” said Tan.

In response to Covid-19 pandemic challenges, this is the group’s biggest round of layoffs since 2020, when 360 jobs were cut to deal with the challenge.

Despite no layoffs being announced, Tan said Grab is still on track to reach breakeven on group adjusted earnings before interest, taxes, depreciation, and amortization by the end of the year.

In February, the company announced it would be bringing forward its target for the fourth quarter of 2023, which is half a year earlier than its previous projections.

As per the CEO, these job cuts aren’t a “shortcut to profitability” but are intended to give Grab the flexibility to adapt to the business environment and the rapid emergence of artificial intelligence.

It has been reported that Grab will provide severance payments of half a month for every six months of completed service, or in accordance with local statutory guidelines, whichever is higher.

It is also expected that laid off workers will receive coverage for medical insurance until the end of the year, relocation assistance, career transition, and development support, among other things.

After Grab’s COO Alex Hungate told Reuters in September that the company doesn’t anticipate laying off a large number of workers due to the weak economy, the announcement came as a surprise. A spokesperson for Grab said that Grab takes great care and prudence when it comes to hiring.

As a result of lockdowns in place during the pandemic, major U.S. tech firms like Amazon and Meta went on a hiring spree. As the business conditions reverted to pre-pandemic levels or approached them, many of these companies laid off thousands of workers as a result.

As a result of a rebound in mobility demand, Grab posted strong revenue growth and narrowed losses for 2022.

A major Southeast Asian technology company announced Tuesday the latest round of layoffs it has made as part of its ongoing restructuring efforts.

In March, Indonesia’s GoTo announced that it would cut 600 jobs in order to boost profitability, according to Reuters, while Singapore’s Sea also announced in the end of 2022 that they would cut more than 7,000 jobs.

SEE ALSO:

Rex Airlines Warns Of $35m Loss Due To Supply Chain Problems

MasterCard Files A Trademark Application For Its Crypto Solutions