360 employees let go in Grab layoff
Citing the impact on business and the prolonged recession the COVID-19 pandemic is likely to bring, Grab has retrenched 360 employees, or about 5% of its total workforce of some 7,000 employees.
In a blog post, Anthony Tan, CEO and co-founder of Grab, wrote, “We tried everything possible to avoid this but had to accept that the difficult cuts we are making today are required, because millions depend on us for a living in this new normal.
“Over the past few months, we reviewed all costs, cut back on discretionary spending, and implemented pay cuts for senior management. In spite of this, we recognise that we still have to become leaner as an organisation in order to tackle the challenges of the post-pandemic economy.”
As early as this April, Tan had described COVID-19 as “the single biggest crisis” Grab had faced in the eight years since its founding, and warned that the company would have to make “tough decisions” when it comes to cutting costs and managing capital.
In May, Grab cut its senior management’s salaries by up to 20% and urged employees to take voluntary no-pay leave as it grappled with falling revenue.
Moving forward, Tan said the company will shut down some non-core projects, consolidate functions for greater efficiency, and reallocate resources to support growing verticals such as Grab’s delivery service.
He concluded, “We will focus on adapting our core verticals such as ride-hailing, deliveries, payments and financial services to address the challenges and opportunities of the new normal.
“At the same time, we will expand support for small businesses by enriching our merchant service offerings. We believe these steps will steady us on the path towards sustainability.”