Singapore: Grab to lay off 360 employees

Grab Holdings Inc. (Grab) will be terminating the services of about 360 or just under five per cent of its employees.

In a note to staff today, chief executive officer and co-founder Anthony Tan assured that the lay off would be Grab’s last this year, organisation-wide.

“We understand this news will cause anxiety and dread. Please know that we did not come to this decision lightly. We tried everything possible to avoid this but had to accept that the difficult cuts we are making today are required, because millions depend on us for a living in this new normal.

“Every impacted Grabber has contributed to building Grab into the everyday app that it is today. We are deeply grateful for your efforts and we will do all that we can to help you get back on your feet.

“We have always hired with the best of intentions for Grabbers to grow together with us. We are truly sorry for what’s happening today. To those who are impacted, we owe you an explanation,” he said.

Since February, Tan explained, Grab like other businesses globally, had not been spared the stark impact of COVID-19.

“At the same time, it has become clear that the pandemic will likely result in a prolonged recession and we have to prepare for what may be a long recovery period,” he said.

To this end, he said, Grab over the past few months had been reviewing its costs, cut back on discretionary spending, and implemented pay cuts for senior management.

“In spite of all this, we recognise that we still have to become leaner as an organisation in order to tackle the challenges of the post-pandemic economy,” he said.

Tan said Grab would be sunsetting some non-core projects, consolidating functions for greater efficiency, and right-sizing teams to better match the company’s changing business needs, given the external environment.

“We are also doubling-down on our delivery verticals and have redeployed Grabbers to meet the increased customer demand for deliveries.

“We were able to save many jobs through this redeployment of resources and it helped limit the scope of the reduction exercise to just under five per cent,” he said.

Meanwhile, he said Grab’s Board and leaders remained bullish on the company’s business outlook.

“We will focus on adapting our core verticals such as ride-hailing, deliveries, payments and financial services to address the challenges and opportunities of the new normal.

“At the same time, we will expand support for small businesses by enriching our merchant service offerings. We believe these steps will steady us on the path towards sustainability,” he said.

According to Tan, the affected staff should receive an email by 1 pm today, with guidance on the next steps. Grab will provide the necessary financial, professional, medical and emotional support including severance payment and enhanced separation payment.

-- BERNAMA