Southeast Asia-based ride-hailing giant Grab has announced that it will let go around 5 percent of its current workforce, which is around 360 employees, the media reported.
Grab chief executive officer Anthony Tan recently made the announcement to his employees.
With regard to the job cut, a spokesperson from Grab told TechCrunch that the company does not face any capitalisation issues. The layoffs are a part of a broader plan for Grab to become a leaner and more efficient organisation.
The spokesperson also said that Grab remains laser-focused on adapting its core businesses of transport, deliveries, payments, and financial services to address the challenges and opportunities of the new normal.
In a statement, Anthony Tan said, “Since February, we have seen the stark impact of COVID-19 on businesses globally, ours included. 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.”
“Over the past few months, we have reviewed all costs, cut back on discretionary spending, and implemented pay cuts for senior management. In spite of all this, we recognize that we still have to become leaner as an organization in order to tackle the challenges of the post-pandemic economy.”
“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 5 percent,” he added.
Earlier this year, it was reported that Japan’s Mitsubishi UFJ Financial Group (MUFG) is set to invest over $700 million in the Singapore-based company.
Both MUFG and Grab will develop financial services products such as insurance and loans. The same products will be available through Grab’s mobile app.