No Layoffs At Grab Despite Weak Market

Grab, Southeast Asia's biggest ride-hailing and food delivery firm, does not envisage having to undertake mass layoffs as some rivals have done, and is selectively hiring, while reining in its financial service ambitions, Anshuman Daga and Xinghui Kok reported for Reuters.

Photo Insert: Grab, which operates in 480 cities in eight countries, has more than five million registered drivers and more than two million merchants on its platform.

Chief Operating Officer Alex Hungate said that earlier in the year, Grab had been worried about a global recession and was "very careful and judicious about any hiring", and as a result, it had not got to the "desperate" point of a hiring freeze or mass layoffs.

"Around mid-year, we did some kind of specific reorganizations, but I know other companies have been doing mass layoffs, so we don't see ourselves in that category," Hungate, 56, told Reuters in his first interview since joining Singapore-based Grab Holdings Ltd in January.

The company was hiring for roles in data science, mapping technology, and other specialized areas though every hire was a much bigger decision than it used to be, he said.

"You want to make sure that we're conserving capital. The hurdle for making a hire has definitely been raised."

Decade-old Grab, a household name in Southeast Asia, had about 8,800 staff at the end of 2021. Like its rivals, it has benefited from a boom in food services during the COVID-19 pandemic, while ride-hailing suffered.

Grab, which operates in 480 cities in eight countries, has more than five million registered drivers and more than two million merchants on its platform. It caught global attention in 2018 when it acquired Uber's Southeast Asian business after a costly five-year battle.

As economies open up, food delivery demand is softening while ride-hailing has yet to fully recover. Tech valuations have also fallen dramatically and inflation, slower growth, and rising interest rates have emerged as risks.

In recent weeks, Southeast Asia's largest e-commerce firm Shopee cut jobs in various countries and shut some overseas operations after parent Sea reported widening losses and scrapped its annual e-commerce forecast.

Hungate, a veteran of the financial services, logistics, and food sectors, has spearheaded a push away from low-margin business lines as Grab races to turn profitable.

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