Grab, the top ride-hailing and food delivery service in Southeast Asia, announced that it is laying off 1,000 employees, or 11% of its workforce.
According to the head of the business, the cost-cutting measures were necessary to maintain long-term affordability of services.
The Singapore-based company provides banking services, trips, and delivery across eight Southeast Asian nations.
In 2018, Grab took over the rival US-based Uber’s regional business.
The largest cuts made since the start of the coronavirus outbreak, according to chief executive Anthony Tan, were not “a shortcut to profitability,” he said in an email to workers.
Change has never been this quick, he continued, citing the effects of new technology and increased borrowing prices. Artificial intelligence (AI) technology is developing at a dizzying pace. The competitive environment has been negatively impacted by the rising cost of capital.
The so-called “super-app,” also referred to as “the Uber of Southeast Asia,” provides services throughout the area and is available in nations like Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
Grab stated in March 2018 that it had acquired Uber’s regional operations, calling the transaction “the largest-ever of its kind.”
Grab’s last round of job cuts was in 2020, when it shed 360 positions due to the pandemic.
On Wednesday, the company’s shares, which are listed in New York, fell 1.2%.
The announcement comes at a time when numerous gig economy businesses worldwide have similarly reduced staff.
Grab’s competition in Southeast Asia, Indonesian ride-hailing company GoTo, reduced its personnel by around 12% last year and slashed another 600 positions in March.
