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

Based in Singapore Grab collectibles He is Cut more than 1,000 jobsthe company’s CEO said on Tuesday, in an effort to manage costs and reposition the company in a competitive landscape.

In an email to employees, CEO Anthony Tan said the layoffs are a “painful but necessary step” that the delivery and food delivery app operator must take to remain competitive in the future.

“The primary objective of this exercise is to strategically realign ourselves, so that we can move faster, work smarter, and rebalance our resources across our portfolio in line with our long-term strategies,” said Tan.

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

Even without layoffs, Tan said Grab is on track to break even this year on the group’s adjusted EBITDA. In February, the company said it was moving its target to the fourth quarter of 2023, half a year earlier than its previous guidance.

The CEO said job cuts are not a “short cut to profitability” but will enable Grab to adapt to the business environment and the rapid emergence of AI.

Tan said Grab will provide half-month severance pay for every six months of service completed, or based on local legal guidelines, whichever is higher. Laid-off workers will also receive medical insurance coverage through the end of the year, repatriation support as well as job relocation and development support, among other measures.

The announcement comes after Alex Hunget, Grab’s chief operating officer, told Reuters in September that the company does not expect mass layoffs despite weak economic conditions. Grab was “extremely careful and judicious about any hiring,” Hangit said.

Major US tech companies such as Amazon and Meta launched hiring operations during the pandemic as lockdowns boosted business. Subsequently, many have laid off thousands of workers as working conditions return to or approach pre-pandemic conditions.

Grab posted strong revenue growth and trimmed losses for 2022, citing a rebound in mobility demand.

Tuesday’s announcement is the latest round of layoffs from a major tech company in Southeast Asia. In March, Indonesia go to It announced it would lay off 600 employees to boost profitability, Reuters reported, while Singapore-based Sea Corp cut more than 7,000 jobs in the last six months of 2022.