In a letter from co-founder and CEO Anthony Tan to Grab's employees today (June 16), Grab announced that around 360 employees, or a little less than 5 percent of his employees, will be fired.
The dismissal takes place less than a week after it was announced last Thursday (June 11) to limit the performance-based commission discount to the most powerful 18,000 drivers. A number of programs have also been cut, including monthly trip target bonuses and birthday rewards.
The company also separately announced last Monday (June 9) that it is launching its Small Business Booster program to help small businesses.
Back in April, they cut management pay by up to 20 percent and encouraged their employees to take voluntary unpaid leave because the COVID 19 outbreak is fighting the business.
“Since February we have seen the strong impact of COVID-19 on companies worldwide, including ours. At the same time, it has become clear that the pandemic is likely to lead to an ongoing recession and we have to prepare for a potentially long recovery period, ”Anthony wrote in the open letter.
Photo credit: Digital New Asia
“In the past few months, we have reviewed all costs, cut discretionary expenses and cut salaries for management. Despite all of this, we recognize that as an organization we have to become even leaner to face the challenges of the post-pandemic economy, ”he continued.
He said Grab would bring some non-core projects to a standstill, double their supply lines, and use Grabbers again to meet growing customer demand for deliveries.
"By reallocating resources, we were able to save many jobs and limit the scope of the reduction to just under 5 percent."
"I assure you that this will be the last organizational-wide layoff this year, and I am confident that if we take action against our updated plans to achieve our goals, we will not have to go through this painful exercise again in the foreseeable future," said he confirmed their employees.
Selected image source: Grab