SINGAPORE: Ride-hailing and payments firm Grab announced on Tuesday (Jun 16) that it has retrenched about 360 employees, or 5 per cent of its headcount, as a result of the COVID-19 outbreak.
In a note to employees, CEO and co-founder Anthony Tan said that this is Grab's "last organisation-wide layoff" this year.
AdvertisementAdvertisement"Please know that we did not come to this decision lightly. We tried everything possible to avoid this but had to accept that the difficult cuts we are making today are required, because millions depend on us for a living in this new normal," said Mr Tan.
[h=3]READ: Grab prepares for 'long winter' as COVID-19 hits revenue[/h][h=3]READ: Growth in food delivery business not enough to cover transport decline amid COVID-19 outbreak, says Grab Singapore head[/h]"We are truly sorry for what’s happening today. To those who are impacted, we owe you an explanation," he said.
AdvertisementAdvertisementOver the past few months, Grab has reviewed all costs, cut back on discretionary spending and reduced the salaries for senior management, said Mr Tan.
With an expected recession ahead, he added, there was a need for Grab to prepare for a "long recovery period" and become leaner as an organisation.
Moving forward, Grab will halt certain non-core projects, consolidate functions for greater efficiency and right-size some teams.
"I assure you that this will be the last organisation-wide layoff this year and I am confident as we execute against our refreshed plans to meet our targets, we will not have to go through this painful exercise again in the foreseeable future," said Mr Tan.
Affected employees were informed via email by 1pm on Tuesday.
The retrenchment benefits include a severance payment of half a month for every six months of completed service.
They will also receive an enhanced separation payment, worth about 1.5 months of salary, on top of the severance pay for additional assistance during the COVID-19 crisis and bonus for work done this year.
Retrenched employees will continue to have medical insurance coverage until the end of the year, while expectant parents will be able to encash their maternity or paternity leave.
They can also opt to keep their laptops.
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