Grab Announces Largest Layoff Yet, Cutting 1,000 Jobs Amidst Restructuring Efforts

Grab is set to layoff approximately 1,000 employees, amounting to around 11% of its workforce. This marks the company’s most significant round of layoffs since the pandemic, when it reduced its staff by 360 in 2020. Grab’s CEO, Anthony Tan, addressed the employees via email, emphasizing that the layoffs are not merely a shortcut to profitability but a crucial step towards implementing fundamental changes to the company’s operational model and cost structure. The decision to downsize was described as painful yet necessary to effectively navigate the highly competitive industry.

 

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Grab, a prominent tech player in Southeast Asia, is undergoing a comprehensive restructuring effort aimed at managing costs and adapting to the rapidly evolving ride-hailing and food delivery market. In an internal email, CEO Anthony Tan stated that the layoffs are essential for Grab to maintain its competitive edge in the future. He acknowledged the rapid pace of change and technological advancements such as Generative AI, as well as the impact of increased capital costs on the competitive landscape.

Tan emphasized that the objective of the layoffs is to allow Grab to reorganize its operations, enabling the company to move faster, work smarter, and rebalance its resources. As part of the severance package, Grab will provide affected employees with a severance payment equivalent to half a month’s salary for every six months of completed service, or in compliance with local statutory guidelines, whichever is higher. Additional support measures include medical insurance coverage until the end of the year, career transition assistance, repatriation support, and development assistance.

Grab’s financial performance has shown resilience, with strong revenue growth and narrowed losses in 2022, driven by a recovery in mobility demand. The company announced in February that it was advancing its target for breakeven to the fourth quarter of 2023, six months ahead of its previous projection. Despite the layoffs, Grab is on track to achieve breakeven this year on a group-adjusted basis, considering earnings before interest, taxes, depreciation, and amortization.

Grab, the Singapore-based ridesharing platform, has made its most substantial employee downsizing announcement to date, reducing its workforce by around 11%. The decision comes as the company undergoes a comprehensive restructuring process to navigate the highly competitive ride-hailing and food delivery industry. CEO Anthony Tan emphasized that the layoffs are not solely driven by the pursuit of profitability but rather by the need for fundamental changes in Grab’s operating model and cost structure. The company aims to maintain its competitiveness, adapt to the fast-paced environment, and leverage emerging technologies. Despite the challenges, Grab’s financial performance remains resilient, with strong revenue growth and a positive outlook for achieving breakeven in the near future.

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