Grab Implements Workforce Reduction to Manage Costs

Singapore-based Grab, a prominent ride-hailing and food-delivery app in Southeast Asia, has announced plans to lay off 1,000 employees, constituting 11 percent of its workforce. This decision, communicated by Chief Executive Anthony Tan, is driven by the need to control expenses and adapt to the evolving landscape of the industry and technology.

Tan emphasized that these layoffs are not aimed at achieving short-term profitability but are part of a broader restructuring effort. He acknowledged that the process is challenging but deemed it necessary for the company’s sustainability.

Grab initially launched as a taxi-booking app in Malaysia in 2012 and has since evolved into Southeast Asia’s largest ride-hailing platform. Additionally, the company has expanded its services into financial sectors such as digital payments. It currently operates in eight Southeast Asian nations, including Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

Grab’s decision to reduce its workforce follows a similar trend in the tech industry. Indonesian tech firm GoTo, which offers ride-hailing, e-commerce, and financial services, laid off 12 percent of its staff in 2022 and dismissed an additional 600 employees in March.

Despite reporting a quarterly loss of $250 million in May, Grab noted substantial revenue growth, with first-quarter revenue for this year surging by 130.3 percent to $525 million compared to the previous year. Tan expressed confidence that Grab is on track to achieve profitability this year, even without the staff reductions.

Grab’s previous job cuts occurred in 2020 when approximately 5 percent of the workforce, totaling 360 employees, were laid off due to the pandemic’s impact. At the end of 2022, the company employed 11,934 staff members, as reported in its annual report.

In December, Grab introduced cost-cutting measures, including freezing most hiring, limiting pay raises for senior managers, and reducing travel and expense budgets.

In 2021, Grab went public in the United States, with its initial valuation at $39.6 billion. However, the company’s shares are currently trading at around $3.40 each, significantly lower than the $13 initial trading price.

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