Grab To Layoff 1,000 Staff, Aims To Save Cost and Enable Restructuring

Singapore-based Grab Holdings Inc GRAB disclosed laying off 1,000 employees to manage costs and strategically reorganize the company.

The headcount reduction is GRAB's biggest round of job cuts since the pandemic, as per CNBC.

The company has been continuously working towards managing costs across operations and boosting platform efficiency, which has resulted in bottom-line improvement every quarter since Q1 2022.

Grab projects to achieve breakeven adjusted EBITDA with or without the announced job cut. 

CEO and co-founder Anthony Tan said, "The primary goal of this exercise is to strategically reorganise ourselves, so that we can move faster, work smarter, and rebalance our resources across our portfolio in line with our longer term strategies....Restructuring thus emerged as a painful but necessary step, to set Grab on the correct trajectory towards our longer-term future."

Last month, Grab announced that its co-founder Tan Hooi Ling is preparing to relinquish her operational and board roles by 2023 end.

Also, the company reported first-quarter FY23 revenue growth of 130% year-on-year to $525 million, beating the consensus of $490.1 million driven by growth across segments. EPS loss of $(0.06) was in line with the consensus.

Related: Why Are Grab Holding Shares Trading Higher Friday

Price Action: GRAB shares closed lower by 1.17% at $3.38 on Tuesday.