Singapore-based Grab Holdings has announced its biggest-ever layoffs since the pandemic.
Grab announces biggest-ever layoff
In a letter sent to employees late on Tuesday, Chief Executive Officer Anthony Tan said the cuts, the biggest since the start of the pandemic, was not “a shortcut to profitability” but a strategic reorganization to adapt to a fast-changing business environment.
I want to be clear that we are not doing this as a shortcut to profitability. Over the past couple of years we’ve been consistent in managing costs tightly in all areas of our operations and on improving platform efficiency.
As a result, our bottom line has improved every quarter since Q1 2022. With or without this exercise, we’re on track to hit Group Adjusted EBITDA breakeven this year.
The decision to streamline operations and optimize the cost structure aims to lay a solid foundation for Grab’s future endeavors.
Grab: Necessary step in the long run
Anthony added that the ultimate goal of the restructuring is to enhance operational efficiency, work smarter, and align resources with the company’s long-term strategies.
While acknowledging the painful nature of such a process, Grab views this restructuring as a “necessary step towards securing a competitive advantage and propelling the company towards sustained success”.
Grab’s severance package
To alleviate some of the hardships, Anthony also shared that the company has put in place a comprehensive support package.
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This package includes severance payments based on length of service, encashment of accrued annual leave, extended medical insurance coverage, and career transition support.
Additionally, Grab is providing a range of resources to facilitate the transition, such as access to professional coaching, LinkedIn Premium subscriptions, and the Grabber Assistance Programme for emotional support.
“While I know this is what we must do, that knowledge hasn’t removed the sadness from having to do it.
To those who are leaving, we thank you so much for sharing your time and talent with us, and for all the impact you’ve made towards our mission,” expressed Anthony Tan, highlighting the company’s gratitude for the contributions of departing employees.
About Grab
Grab is a leading Southeast Asian super app that provides a wide range of services, including transportation, food delivery, digital payments, and financial services. With its extensive presence in more than 400 cities across eight countries, Grab has become a prominent player in the region’s technology and transportation ecosystem.
