Shulou(Shulou.com)11/24 Report--

Thank you, Mr. Air, a netizen of CTOnews.com, for your clue delivery! On Tuesday, local time, Singapore-based Southeast Asian takeout and ride-hailing company Grab announced that it would cut 1000 jobs, or 11% of its workforce, citing the need to manage costs and ensure more affordable services over the long term.

In a letter sent to employees on Tuesday night, Anthony Tan, Grab's chief executive, said it was the largest layoff since the outbreak began and was not a "profitable shortcut" but a strategic restructuring to adapt to the business environment.

"change has never been so fast, technologies such as generative artificial intelligence are developing at an alarming rate, and the cost of capital is rising, all of which have directly affected the competitive landscape," Chen Bingyao said in the letter.

He added: "We must combine our size with flexible execution and cost leadership so that we can continue to provide more affordable services and deepen our penetration into the mass market."

Chen Bingyao said that even without layoffs, Grab has controlled costs and should be able to achieve the group's adjusted EBITDA break-even target this year.

Founded in 2012, Grab provides delivery, car and financial services in eight Southeast Asian countries, including Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Last year, GoTo, an Indonesian technology company that provides taxi-hailing, e-commerce and financial services, made a similar move. It has experienced severe cost cuts, including cutting 12 per cent in 2022 and laying off another 600 employees in March.

The incoming chief executive plans to lead the company temporarily and resign when profitability improves, sources said last week.

In may, Grab reported a quarterly loss of $250 million (currently about 1.795 billion yuan), but said revenue in the first quarter of this year rose 130.3% from a year earlier to $525 million (currently about 3.77 billion yuan). In February, the company released an optimistic forecast for full-year revenue in 2023 and advanced its profit schedule.

Grab, which is listed in the US, was last laid off in 2020, when 360 people were laid off to cope with the impact of the epidemic. Grab said in its latest annual report that it had 11934 employees by the end of 2022, including about 2000 who acquired a grocery store chain last year.

Grab said in September that despite the weak market, there were no plans for large-scale layoffs. In December, Chen Bingyao told employees that the company would freeze most hiring, pay increases for senior managers, and cut travel and spending budgets.

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