Grab cuts management pay, asks employees to take no-pay leave
Grab has cut its senior management’s salaries by up to 20% and urged employees to take voluntary no-pay leave as it grapples with falling revenue due to the COVID-19 crisis.
The ‘circuit breaker’ measures to curb the outbreak in Singapore have hit the technology firm’s ride hailing business hard, although there has been an increase in demand for its food delivery service.
And Grab has decided to take the latest step to cut its leaders’ pay and encourage its staff to take no-pay leave following the extension of the ‘circuit breaker’ till June 1. It also said that it might not be able to continue its financial aid to its private-hire drivers if the ‘circuit breaker’ is extended again. It will continue to cut its commission by at least 50% until June 1.
Grab Singapore’s head of transport Andrew Chan said, “As our revenues continue to fall, senior Grab leaders have taken a pay cut of up to 20% and Grab staff have also been encouraged to take no-pay leave voluntarily.
“We had been hopeful that the stricter circuit breaker measures would be lifted next week. Instead, the circuit breaker period was extended to June 1.
“We may no longer be able to provide extra financial support if the circuit breaker is extended past June 1,” he added.
Grab is among the many firms that have resorted to cutting its management pay and whose employees are encouraged to take no-pay leave.