Grab to Layoff 1,000 Employees, Stresses Its Not a “Shortcut to Profitability”by Fintech News Singapore June 21, 2023
Singapore-based tech giant Grab Holdings will be laying off 1,000 of its employees in a “painful but necessary step” according to an email extract that CEO Anthony Tan had sent out company-wide yesterday.
He stressed that the decision was not done as a “shortcut to profitability” and was instead in line with the need to be “fit for the future”.
Anthony outlined that Grab’s bottom line has improved every quarter since Q1 2022. He added that even without the layoffs, Grab would still be on track to hit Group Adjusted EBITDA breakeven this year.
In the past year, Grab had streamlined some focus areas and moving forward, it believes that it needs to make fundamental changes to its operating model and cost structure to remain competitive.
These measures were undertaken as Grab aimed to shorten its initial timeline to hit its profitability target. The firm had previously expected to hit that goal in the second half of 2024.