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

Singapore-based Grab Holdings is cutting implicit 1,000 jobs, its CEO said Tuesday, successful a bid to negociate costs and reorganize the institution successful a competitory landscape.

In an email to staff, CEO Anthony Tan said the layoffs are a "painful but indispensable step" that the ride-hailing and nutrient transportation app relation indispensable instrumentality to stay competitory successful the future.

"The superior extremity of this workout is to strategically reorganize ourselves, truthful that we tin determination faster, enactment smarter, and rebalance our resources crossed our portfolio successful enactment with our longer word strategies," said Tan.

This is the group's largest circular of layoffs since 2020, erstwhile it cut 360 jobs successful effect to Covid-19 pandemic challenges.

Even without layoffs, Tan said Grab is connected way to deed breakeven this twelvemonth connected radical adjusted net earlier interest, taxes, depreciation, and amortization. In February, the institution said it was bringing guardant its target to the 4th fourth of 2023, fractional a twelvemonth earlier than its erstwhile guidance.

The CEO said the occupation cuts are not a "shortcut to profitability" but volition alteration Grab to accommodate to the concern situation and accelerated emergence of A.I.

Tan said Grab volition supply severance outgo of fractional a period for each six months of completed service, oregon based connected section statutory guidelines, whichever is higher. Laid disconnected workers volition besides person aesculapian security sum until the extremity of the year, repatriation enactment arsenic good arsenic vocation modulation and improvement support, among different measures.

The announcement comes aft Grab's COO Alex Hungate told Reuters successful September that the institution does not expect to behaviour wide layoffs contempt weaker economical conditions. Hungate said Grab was "very cautious and judicious astir immoderate hiring."

Major U.S. tech firms similar Amazon and Meta went connected a hiring spree during the pandemic arsenic lockdowns boosted business. Many aboriginal laid disconnected thousands of workers arsenic concern conditions reverted to oregon approached pre-pandemic conditions.

Grab posted beardown gross growth and narrowed losses for 2022, citing a rebound successful mobility demand.

Tuesday's announcement is the latest circular of layoffs from a large Southeast Asian tech company. In March, Indonesia's GoTo announced it was laying disconnected 600 employees to boost profitability, Reuters reported, portion Singapore-based Sea cut much than 7,000 jobs successful the past six months of 2022.