Singapore-based Grab Holdings is reportedly preparing to implement its largest round of job cuts since the onset of the pandemic
Layoffs
June 20, 2023
Singapore-based Grab Holdings (GRAB.O), the leading ride-hailing and food delivery app in Southeast Asia, is reportedly preparing to implement its largest round of job cuts since the onset of the pandemic. The layoffs, which are expected to exceed the previous round in 2020, will impact the company's workforce and are a response to the ongoing economic challenges.
According to sources familiar with the matter cited by Bloomberg News, Grab is poised to make a significant layoff announcement, which may be made public as early as this week. These job cuts are anticipated to surpass the previous round in 2020 when approximately 360 employees, or 5% of the workforce, were affected. Attributed to the economic repercussions of the pandemic, the 2020 layoffs had a profound impact on the organization.
When approached for a statement regarding the impending layoffs, Grab's media relations team declined to comment. This suggests that the company is withholding details until an official announcement is made. However, the forthcoming news is likely to cause anxiety and concern among Grab's employees and stakeholders alike.
Despite Grab's optimistic revenue forecast and expedited profitability timeline for 2023 announced in February, the current economic climate has necessitated difficult decisions. Back in September, Grab had assured its workforce that it had no plans for mass layoffs. However, the CEO revealed in December that the company was implementing a series of cost-cutting measures, such as freezing most hiring, eliminating pay rises for senior managers, and reducing travel and expense budgets.
As of the end of 2022, Grab employed approximately 11,934 staff members, according to its latest annual report. The impending round of layoffs will undoubtedly impact a significant portion of the company's workforce. The exact number of affected employees is yet to be disclosed but is expected to exceed the previous round in 2020.
With a strong foothold in the Southeast Asian market, Grab currently operates in eight countries, including Singapore, Indonesia, and Thailand. The company's services encompass ride-hailing, food delivery, and other on-demand services. As Grab navigates the challenging economic landscape, the organization's operations and services in these countries may undergo changes in response to the impending layoffs.
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