Grab to lay off 5% of its headcount due to Covid-19's impact
Grab slashes headcount by 5% as Covid-19 bites into business
Tech company and Singapore's largest private-hire car operator Grab is cutting close to 360 jobs, or about 5 per cent of its headcount, amid the growing economic fallout from the Covid-19 pandemic.
This was announced by Grab's co-founder, Anthony Tan, during a company townhall meeting earlier today. The restructuring comes a week after the company decided to limit performance-based commission rebate to 18,000 drivers. It has also dropped a series of incentive schemes for drivers, including monthly trip target bonuses and birthday rewards.
The Covid-19 pandemic's effect on the local economy is already well known and with almost everyone staying at home due to the Circuit Breaker measures, demand for ride-hailing services, which is Grab's main business, has fallen drastically.
According to Anthony, Grab would be cutting some non-core projects, consolidating functions for greater efficiency, and right-sizing teams to better match their changing business needs. It would also focus on its delivery services by re-deploying staff to meet the increased demand for deliveries.
The uptick in its food delivery business, as most Singaporeans stayed home to work, was not enough to make up for the revenue fall, Reuters had reported.
“I assure you that this will be the last organisation-wide layoff this year, and I am confident as we execute against our refreshed plans to meet our targets, we will not have to go through this painful exercise again in the foreseeable future.” he added.
Source: Straits Times