Grab Holdings to cut 11% of workforce in strategic restructuring effort

SINGAPORE — Grab Holdings, Southeast Asia’s largest ride-hailing and food delivery application, has reduced its workforce to 11, according to a letter sent to employees by CEO Anthony Tan late Tuesday, June 20. 100% and lay off about 1,000 employees.

The measures are the biggest job cuts since the outbreak of the pandemic and are driven by the need to control costs and ensure affordability and long-term service.

The letter, obtained by Reuters, includes Tan stressing that these cuts were not rushed steps to achieve profitability. Rather, it forms part of a significant strategic realignment designed to adapt to the current business environment.

“Technologies such as generative AI[artificial intelligence]are evolving at breakneck speed. The cost of capital is rising, directly impacting the competitive landscape,” he said.

Mr Tan reassured that despite the headcount reduction, Grab has maintained cost control and is on track to achieve its Group Adjusted EBITDA breakeven target this year. He emphasized the need to combine its sizeable scale with agile execution and cost leadership. This will allow the company to “sustainably offer more affordable services and further deepen its mass penetration.”

Founded in 2012, Super App has operations in eight Southeast Asian countries, including Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. We offer a wide range of services including delivery, ride-hailing and financial services.

To mitigate the impact of the job cuts, Tan outlined measures that will be taken to help affected employees. This provision includes a severance package in which half a month’s salary is paid after every six months of service completed or in accordance with local legal guidelines, whichever is higher.

In addition, employees will receive goodwill payments based on “forfeited target bonuses and shares,” the value of which will be determined by Grab.

The company also promised one year of free access to LinkedIn Premium and LinkedIn Learning, as well as career transition and development assistance, including professional coaching sessions.

bloomberg had previously reported Grab faces increasing competition in ride-hailing and meal delivery services across Southeast Asia and is preparing for the biggest layoffs since the pandemic, the company said.

Job cuts will be announced this week, exceeding the 5% or about 360 layoffs in 2020, he said.