SoftBank-Backed Ride-Hailing Firm Grab Announces Layoffs

Grab informed staff of the move at a townhall, according to people with knowledge of the matter.

SoftBank-Backed Ride-Hailing Firm Grab Announces Layoffs

The impact of COVID-19 on ride hailing platforms in Southeast Asia has been severe

Highlights
  • Singapore-based Grab would cut just under 5 percent of its headcount
  • The 5 percent workforce amounts for about 360 Grab employees
  • The ride-hailing industry has been battered by the pandemic
Advertisement

Southeast Asian ride-hailing and payments firm Grab said on Tuesday it will lay off more than 300 employees due to the impact of novel coronavirus, in the latest setback to major backer SoftBank.

Southeast Asia's most valuable startup with a valuation of $14 billion (roughly Rs. 1.06 lakh crores) informed staff of the cuts at a townhall meeting, according to people with knowledge of the matter.

CEO Anthony Tan told staff in a note which was shared with Reuters the company would cut about 5 percent of its headcount or about 360 employees.

Singapore-based Grab, which is active in eight countries, did not face capitalisation issues and would be "sunsetting non-core projects, consolidating teams and pivoting to focus on deliveries", a spokeswoman said.

Grab currently has $3 billion (roughly Rs. 22,821 crores) in reserves, according to a source with knowledge of the matter.

The layoffs are the latest restructuring at a SoftBank Group portfolio company.

"Venture-backed companies are responsible for maximising growth while being financially sustainable in light of volatile financial markets, so re-balancing of resources in the long journey sometimes becomes critical to their success," said Varun Mittal, who heads the emerging markets fintech business at consultancy EY.

The ride-hailing industry has been battered by the pandemic, with SoftBank-backed Uber and Ola cutting jobs and costs.

The impact in Southeast Asia has been severe, with 11 drivers for Grab and rival Gojek telling Reuters last week they had their income slashed by more than half during the outbreak.

© Thomson Reuters 2020


Is Mi Notebook 14 series the best affordable laptop range for India? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts or RSS, download the episode, or just hit the play button below.

Comments

For details of the latest launches and news from Samsung, Xiaomi, Realme, OnePlus, Oppo and other companies at the Mobile World Congress in Barcelona, visit our MWC 2024 hub.

Further reading: Grab, SoftBank, Uber, Lyft, Ola, Coronavirus
2021 Oscars, BAFTA Awards Postponed to April Due to Coronavirus Pandemic
Hackers Can Eavesdrop on Your Conversations Using Light Bulbs
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »