The Company Grab Prepares For Layoffs Despite Slow Growth

2
b2b

In Singapore, Grab is about to announce its largest round of job cuts in three years.
According to founder and CEO Anthony Tan, the ride-hailing and food delivery business said on Tuesday, June 20, that it was firing 1,000 of its around 12,000 employees as a cost-saving measure.

I want to make clear that we are not doing this as a quick cut to profitability, Tan said in a message to the team that was posted on the company blog.

“Over the past two years, we’ve improved platform effectiveness while still maintaining strict cost discipline across every aspect of our operation. Because of this, starting since Q1 2022, our bottom line has grown.

In June 2020, the firm eliminated 300 positions, or 5% of its employees, as the COVID epidemic started to erode the profits of ride-hailing providers.

Three years later, the company is dealing with inflation, a new worldwide crisis. Grab revealed its quarterly results last month, which indicated that customers were still having to contend with pricing increases.

Grab’s gross merchandise value (GMV) decreased by 4% or 7% in constant currency to little under $5 billion, while GMV per user remained stable or increased by 3%.

Grab said in December of last year that it will stop hiring and freeze salary as it was ready for “uncertainty in 2023.”

The company’s upcoming layoffs occur at a time when competition among meal delivery services is intense. Grubhub said last week that it was reducing its workforce numbers by 15%, a change that would affect about 400 employees.

Deliveroo, a British aggregator, laid off 9% of its workforce earlier this year. As customers become more thrifty and reduce their reliance on on-demand convenience, these changes are taking place.