Layoff Update: Many small and big companies, including Amazon and Meta, have laid off amid fears of a recession. Now Grab has also joined this list. This is the biggest layoff by the tech giant after the pandemic. The company had fired about 360 employees in the year 2020.
Grab Layoff: Singapore’s ride-hailing and food delivery company Grab is going to lay off about 1000 of its employees. This is about 11 per cent of the company’s total workforce. Many small and big companies, including Amazon and Meta, have laid off amid fears of a recession. Now Grab has also joined this list. This is the biggest layoff by the tech giant after the pandemic. This Southeast Asian company had fired about 360 employees in the year 2020.
The CEO of the company told this reason
Grab CEO Anthony Tan said the layoffs are part of fundamental changes to the company’s operating model and cost structure. He described the decision to lay off about 1000 employees as a ‘painful but necessary step’. In a letter to Grab employees, Tan wrote, “I want to be clear that we are not doing this layoff as a shortcut to profitability. Over the past few years, we have been working to improve platform efficiency across all areas of our operations and Doing cost management.
Tan continued, “We have to adapt to the environment in which we operate. Change has never been faster. Technologies such as generative AI are developing very rapidly. The cost of capital has gone up, which directly leads to competition. affecting.” The CEO of Grab said that the main objective of the layoffs is to re-organize itself, work better and re-balance its resources for the company to grow faster.
The company was started in 2012
According to the Associated Press, Grab started as a taxi-hailing service in Malaysia in 2012 and later expanded its business to eight Southeast Asian countries, including Indonesia, Malaysia and the Philippines. The company provides ride-hailing, food delivery and financial services to its customers. Grab established itself as the largest ride-hailing company in Southeast Asia after it acquired Uber’s business in the region in 2018.
These big companies also laid off
AFP reported that many Southeast Asian tech companies are cutting jobs to focus on profits. Indonesia’s largest tech company GoTo laid off 1300 employees (12 per cent) last year. Along with this, 600 employees were laid off in March this year. Singapore’s gaming company Sea Limited laid off around 7000 employees last year.
