Nasdaq-listed Grab Holdings, under pressure to turn around, is cutting 1,000 jobs, equivalent to 11% of its headcount, Reuters reported, citing a memo sent by CEO Anthony Tan.
The cuts, the biggest since the start of the pandemic, were not "a shortcut to profitability" but a strategic reorganisation to adapt to the business environment, says Tan.
"Change has never been this fast. Technology such as generative AI (artificial intelligence) is evolving at breakneck speed. The cost of capital has gone up, directly impacting the competitive landscape," Tan said in the letter.
Tan maintains that even without the retrenchments, the company is on track to hit its target for adjusted ebitda breakeven this year.
For its 1QFY2023, Grab's revenue increased by 130.3% y-o-y to US$525 million but remains in the red to the tune of US$250 million.
The company had 11,934 staff as of the end of 2022, including about 2,000 from its acquisition of grocery chain Jaya Groccer last year, according to its most recent annual report.
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Grab joins other regional big tech firms Sea and Goto in cutting jobs, as growth is no longer as fast and investors lose patience with the cash burn.
Grab's shares hardly moved on the news, up 0.44% to US$3.44 as at 10am US time.
