Grab cuts 1,000 jobs, its biggest round of layoffs since the pandemic

Singapore-based Grab Holdings is chopping over 1,000 jobs, its CEO mentioned Tuesday, in a bid to handle prices and reorganize the corporate in a aggressive panorama.

In an e mail to workers, CEO Anthony Tan mentioned the layoffs are a “painful but necessary step” that the ride-hailing and meals supply app operator should take to stay aggressive sooner or later.

“The primary goal of this exercise is to strategically reorganize ourselves, so that we can move faster, work smarter, and rebalance our resources across our portfolio in line with our longer term strategies,” mentioned Tan.

This is the group’s largest spherical of layoffs since 2020, when it lower 360 jobs in response to Covid-19 pandemic challenges.

Even with out layoffs, Tan mentioned Grab is on monitor to hit breakeven this yr on group adjusted earnings earlier than curiosity, taxes, depreciation, and amortization. In February, the corporate mentioned it was bringing ahead its goal to the fourth quarter of 2023, half a yr sooner than its earlier steerage.

The CEO mentioned the job cuts will not be a “shortcut to profitability” however will allow Grab to adapt to the business surroundings and speedy emergence of A.I.

Tan mentioned Grab will present severance fee of half a month for each six months of accomplished service, or based mostly on native statutory tips, whichever is larger. Laid off employees can even obtain medical insurance coverage protection till the top of the yr, repatriation help in addition to profession transition and growth help, amongst different measures.

The announcement comes after Grab’s COO Alex Hungate informed Reuters in September that the corporate doesn’t count on to conduct mass layoffs regardless of weaker financial circumstances. Hungate mentioned Grab was “very careful and judicious about any hiring.”

Major U.S. tech corporations like Amazon and Meta went on a hiring spree in the course of the pandemic as lockdowns boosted business. Many later laid off hundreds of employees as business circumstances reverted to or approached pre-pandemic circumstances.

Grab posted sturdy income progress and narrowed losses for 2022, citing a rebound in mobility demand.

Tuesday’s announcement is the most recent spherical of layoffs from a serious Southeast Asian tech firm. In March, Indonesia’s GoTo introduced it was shedding 600 staff to spice up profitability, Reuters reported, whereas Singapore-based Sea lower greater than 7,000 jobs within the final six months of 2022.