Grab Reduces 5 Percent of Workforce Due to Coronavirus Pandemic

KOMPAS.com – Southeast Asia’s Grab is laying off 5 percent of its workforce as the company reels from the impact of the coronavirus pandemic.

Grab Co-Founder and CEO Anthony Tan announced the difficult decision to lay off 360 Grab workers, which has also affected Grab Indonesia.

A spokesperson for Grab Indonesia has confirmed the layoffs in the country. Employees affected by the layoffs were notified via e-mail on June 16.

Also read: Indonesian Government Eyes Economic Rebound in 2023

Anthony has vowed to not carry out additional layoffs this year.

Similar to many business entities, Grab has had to swiftly maneuver its business activities and performance amid the coronavirus pandemic.

Every country in Southeast Asia has confirmed Covid-19 cases, with Indonesia being the worst-hit in the region.

Read also: Indonesia's Covid-19 Cases Near 40,000-Mark

Southeast Asian countries have also undertaken a lockdown-style response in a bid to curb the spread of Covid-19, and this has severely impacted online transportation companies like Grab.

Anthony Tan said in his statement that Grab has felt the impact of the coronavirus pandemic since February.

Grab cuts spending

In the past few months, Grab has taken an efficiency-centric approach by cutting spending, reducing wages of senior management members, and reviewing the company’s cost component.

Grab has taken the additional steps of stopping non-essential projects and consolidating the company to operate more efficiently.

The company has also restructured its workforce to better meet business demand.

Going forward, Grab will focus on its primary services which include ride-hailing, expedition, digital payments, and financial services.