Grab lays off approximately 360 of its employees, or just under 5% of its workforce, as the Covid-19 pandemic hammered its business.
Anthony Tan, the chief executive of the ride-hailing firm, warned in a note to employees posted online on Tuesday that the company is heading for what can be a long recovery, but added that this would be the last organizational-wide layoff this year.
They Said that they are confident that they will not have to go through this painful exercise again in the foreseeable future as we execute against our refreshed plans to meet our targets. He added that Grab didn’t come up lightly with this decision. Tan said Grab had seen Covid-19’s “stark impact” on his business since February.
It has become clear that the pandemic is likely to result in a prolonged recession, and we need to prepare for what could be a long period of recovery. Grab has reviewed all costs and cut discretionary spending in the past few months, he added.
Grab said his senior leaders would take a pay cut of up to 20 percent in March, while the next highest level of Grab leaders followed suit with a 20 percent pay cut in April, when their profits continued to decline, while their workers were encouraged to take a voluntary no-pay leave.
In fact, they have taken steps towards this goal by “sunset some non-core projects” as well as by redeploying Grab drivers to meet increased demand for deliveries, among other measures. They will also receive medical insurance coverage until the end of the year, along with career transition and development support, among other support measures.