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.

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According to reports, MUFG earlier planned to close around 35 percent of its branches, however, now the bank will be closing 40 percent of its branches in Japan.

The coronavirus pandemic is forcing a number of lenders in Japan to revalue their branches and check cost-effectiveness, even though the government has allowed the banks to function, banking being an essential service.

At the end of March 2018, MUFG had around 515 branches functioning in Japan.

Last year, MUFG revealed it will review the number of branches as it recognised the drastic shift to digitalisation and the increasing demand for internet banking facilities.

Last month, media houses reported that MUFG also plans to let go of around 8000 of its employees by the end of 2024. The bank initially planned to let go of around 6000 of its employees.

Recently, MUFG also became the first Japanese bank to issue a corporate bond in response to the coronavirus pandemic. The lender plans to issue bonds worth $559 million by early June.

The funds raised will be used to help small and medium-sized enterprises (SMEs) deal with the coronavirus crisis.

For the corona bond issuance, reportedly, MUFG will target investors who focus on environmental, social, and governance, or ESG, factors in their investment management.

So far, coronavirus bonds worth $40 billion have been issued globally so far with public institutions such as the International Bank for Reconstruction and Development and the Nordic Investment Bank issuing such bonds.

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Before joining Grab, Peter Oey served as CFO at legaltech company LegalZoom. He also held a similar position at US-based consumer internet business MyLife. He also brings in the experience of working over 12 years at Activision Blizzard.

In his new role as the CFO of Grab, Peter Oey will oversee Grab’s finance operations, treasury, tax, procurement, and real estate and facilities department. He will also work closely with Grab’s president, Ming Maa, and will be involved in forming the company’s strategic business planning.

However, Peter Oey will report to co-founder and chief executive Anthony Tan and will be based out of Singapore. He will replace Linda Hoglund, who vacated the post of Grab’s CFO in 2016.

Anthony Tan told the media, “Last year, we made tremendous progress in growing our food delivery, payments, and financial services business. The growth of these businesses gives us a good foundation for achieving long-term sustainable growth for our company. I’m excited to welcome Peter to the Grab family where his extensive experience scaling rapidly growing technology companies make him a valuable addition to our business.”

As the world goes into lockdown due to the coronavirus pandemic, Grab announced it is providing additional relief initiatives to financially support its drivers, delivery partners, and merchant partners.

Reportedly, senior Grab leaders are willing to take a pay cut of up to 20 percent to help the business deal with the coronavirus crisis.

Japan’s Mitsubishi UFJ Financial Group (MUFG) is set to invest over $700 million in Grab, according to media reports. 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.

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If the potential merger between Grab and Gojek successfully takes place, it will create one of the most highly-valued startups globally. Currently, Grab is valued at around $14 billion and Gojek, on the other hand, is valued at around $9 billion.

Reportedly, Gojek wants a 50 percent stake in the merged entity; however, Grab wants to hold a controlling stake. The management of both firms held numerous meetings over the last years. Also, recently Grab President Ming Maa and Gojek chief executive Andre Soelistyo held a meeting with regard to the potential merger.

However, responding to a media inquiry, a Gojek spokesperson said there are no such plans as of yet and the recent media reports regarding discussions of a potential merger with Grab are not accurate.

Gojek, which is headquartered in Indonesia and Singapore-based Grab, has been waging a price war against each other since last year when it comes to ride-hailing and food delivery sectors.

Gojek, which was founded in 2010, has raised a total of over $3 billion in 12 separate funding rounds. Reportedly, the company is also planning to raise another $2.5 billion in a fresh round of funding. Its list of investors includes Google, JD.com and Tencent, Mitsubishi and Provident Capital.

Grab, on the other hand, has raised around $9 billion in 29 separate funding rounds. Grab’s list of investors includes Toyota, MUFG, Microsoft, Ping An, Hyundai, and Yamaha motors.

According to recent media reports, Japan’s MUFG Bank will invest around $727 million in Grab. Both parties will jointly develop financial services products and it will be available through Grab’s mobile app.

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March 20, 2017: MUFG’s banking subsidiary, The Bank of Tokyo-Mitsubishi UFJ, Ltd, has signed a Framework of Co-operation (Framework) with the Saudi Arabian General Investment Authority (SAGIA). MUFG, or Mitsubishi UFJ Financial Group Inc, is a Japanese financial services company headquartered in Chiyoda, Tokyo.

SAGIA is a government body whose main objective is to oversee investment affairs, including foreign investment, within the Kingdom of Saudi Arabia. MUFG has recently received preliminary approval from the Saudi Arabian Monetary Authority to establish a branch within the Kingdom. The Framework is a further milestone for MUFG, cementing its efforts to positively contribute to economic development within the Kingdom.

Elyas Algaseer, co-head of MUFG in the Middle East, said, “The Framework will enable both MUFG and SAGIA to support the development of trade and investment between Japan and the Kingdom. The execution of the Framework with SAGIA demonstrates MUFG’s commitment to the Kingdom generally, and more particularly, around the development of trade and investment between Japan and the Kingdom.”

SAGIA is focused on enhancing investments and economic development within the Kingdom, creating a business-friendly environment, servicing investors and fostering investment opportunities into the Kingdom.

The Kingdom of Saudi Arabia has one of the world’s largest oil reserves and is a major energy producer and exporter. In addition to having the largest economy in the Middle East, the Kingdom has a promising market with population of over 30 million. The Kingdom is also a member of the G20, and represents a strong presence as one of the leading countries in the Middle East and North Africa. There are around 120 Japanese companies who operate within the Kingdom, and it is expected that this number will continue to increase.

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