Grab Holdings Ltd. Headquartered in Singapore. Grab Holdings Ltd. reported its latest earnings on February 23, 2023.
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Based in Singapore Grab the farm Is cut greater than 1,000 jobsits CEO said Tuesday, looking for to administer costs and reorganize the company in a competitive landscape.
In an email to employees, chief executive Anthony Tan said the layoffs were a “painful but vital step” that the operator of the ride-hailing and food delivery app operator must take to stay competitive in the future.
“The primary focus of this exercise is a strategic reorganization in order that we will move faster, work smarter, and rebalance our resources in our portfolio in line with our long-term strategies,” Tan said.
This is the group’s biggest round of layoffs since 2020, when 360 jobs were cut in response to the challenges of the Covid-19 pandemic.
Even without the layoffs, Tan said Grab is on course to interrupt even this yr with group-adjusted earnings before interest, taxes, depreciation and amortization. In February, the company said it was moving its goal to the fourth quarter of 2023, half a yr sooner than previous projections.
The CEO said the layoffs are usually not a “shortcut to profitability” but will enable Grab to adapt to the business environment and the rapid emergence of artificial intelligence
Tan said Grab will provide severance pay of half a month for each six months of service accomplished, or based on local statutory guidelines, whichever is greater. The laid-off employees will even receive medical insurance until the end of the yr, repatriation support, in addition to profession change and development support, amongst others.
The announcement got here after Grab’s COO Alex Hungate told Reuters in September that the company didn’t expect massive layoffs despite weaker economic conditions. Hungate said Grab was “very careful and prudent about hiring.”
Major US tech corporations like Amazon and Meta went on a hiring spree during the pandemic as lockdowns fueled business. Many later laid off 1000’s of employees as business conditions returned or approached pre-pandemic conditions.
Grab reported strong revenue growth and reduced losses in 2022, citing a rebound in mobility demand.
Tuesday’s announcement is the latest round of layoffs at a significant Southeast Asian tech firm. Indonesia in March Go to announced it was cutting 600 employees to spice up profitability, Reuters reported, while Singapore-based Sea has cut greater than 7,000 jobs in the last six months of 2022.