Grab in Singapore plans first layoffs since pandemic.

Grab Holdings, a company based in Singapore that provides ride-hailing and food delivery services, is preparing for its largest round of layoffs since the pandemic began. According to a report by Bloomberg on Tuesday, sources familiar with the matter stated that the company will officially announce the planned job cuts this week. The layoffs are expected to surpass the previous 5% reduction in 2020 and may affect up to 360 employees. Grab had attributed its earlier downsizing to the economic repercussions of the pandemic. Despite expressing positive revenue projections for 2023 and accelerating its profitability timeline in February, Grab is now planning a fresh round of layoffs. The company predicted its revenue for this year to range between $2.20 billion and $2.30 billion.

Fresh Layoffs by Grab: A Change of Heart

Last September, the Singapore-based firm had stated that it had no plans for extensive layoffs despite the challenging market conditions. However, in December of the same year, Grab had a change of heart, contradicting its earlier statement. In a letter to employees, Grab’s CEO Anthony Tan informed the staff of a freeze on most hiring, pay raises for senior managers, and implemented cost-saving measures such as reduced travel and expense budgets.

According to Grab’s latest annual report, the company had a workforce of 11,934 employees as of the end of 2022. However, it remains unclear how many of these staff members will be impacted by the upcoming job cuts.

As one of the leading Asian tech companies, Grab went public in 2021 through a merger with a special purpose acquisition company ( SPAC ) called Altimeter. The transaction raised a gross profit of $4.5 billion, making it the biggest public US market debut by a Southeast Asian firm. Since then, the company has expanded its operations across Thailand and Indonesia, providing customers with a wide range of services, including ride-hailing and food delivery.

Not the First

With its planned downsizing, Grab joins a number of tech companies that have been forced to slash their workforce due to poor market sentiments. In January, e-commerce giant Amazon announced its plans to reduce its global headcount. That same month, another tech firm, Salesforce, also joined the trend, dismissing 10% of its staff. Other companies, such as Microsoft Corporation and Alphabet, Google’s parent company, have also implemented workforce reductions. These layoffs reflect the challenges technology companies face, grappling with economic uncertainties and changing market dynamics brought on by the pandemic.