Grab, the leading ride-hailing and food delivery app in Southeast Asia, has announced the reduction of 1,000 jobs, which represents approximately 11 percent of its total workforce.
According to the company’s CEO, these job cuts are necessary to lower costs and ensure the long-term affordability of its services.
Based in Singapore, Grab operates in eight Southeast Asian countries, providing delivery, transportation, and financial services.
Read More: World’s largest asset manager BlackRock announces up to 500 job cuts
In 2018, Grab acquired the operations of its US-based competitor, Uber, in the region.
In a communication sent to employees, Chief Executive Anthony Tan emphasized that these cuts, the largest since the beginning of the COVID-19 pandemic, are not merely a means to achieve short-term profitability.
Tan also acknowledged the impact of rapidly advancing technologies, such as generative AI, and the rising costs of capital, which directly influence the competitive landscape.
Read More: Logistics startup Flexport announces 600 job cuts around the world
Known as the “Uber of Southeast Asia,” Grab functions as a super-app, offering a wide range of services throughout the region. It operates in countries including Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
Grab’s previous job cuts occurred in 2020 when the company eliminated 360 positions due to the pandemic.
Following the announcement, Grab’s shares listed on the New York Stock Exchange experienced a decline of 1.2 percent on Wednesday.
Read More: Nearly 400 job cuts announced at BBC World Service
This news coincides with similar job cutbacks seen in gig economy companies worldwide.
GoTo, Grab’s rival in Southeast Asia and an Indonesian ride-hailing company, reduced its workforce by approximately 12 percent last year, followed by an additional 600 job losses in March.
In March, Just Eat, a food delivery firm, announced plans to eliminate 1,870 jobs in the UK due to a sales slowdown.
Need Career Advice? Get employment skills advice at all levels of your career
The company also stated its intention to transition from employing its own couriers to utilizing contractors, resulting in 1,700 job losses.
In April, Lyft, a ride-hailing app in the United States, disclosed its decision to lay off over 1,000 employees, representing more than a quarter of its workforce.
The company also declared that it would not fill an additional 250 vacant positions.
