Jofie Yordan · · 2 min readGrab to close cloud kitchen ops in Indonesia, lays off employees
Southeast Asian tech giant Grab is set to close its Indonesia’s cloud kitchen operations, GrabKitchen, on December 19 this year.
GrabKitchen in Indonesia / Photo credit: Grab
In a statement received by Tech in Asia, the company said GrabKitchen saw inconsistent growth during its four years of operations, which included a shift to an asset-light business model.
“This situation forced us to take a difficult decision, which is not to continue our GrabKitchen operations in Indonesia,” said Mayang Schreiber, Grab Indonesia’s chief communications officer.
The closure of GrabKitchen affected between 10 to 20 Grab employees, the company said. Some of whom were offered to be transferred to other divisions, while others were laid off, the company explained.
Those affected by layoffs will receive compensation and fulfillment of obligations in accordance with the country’s regulations.
In addition, they will also receive additional compensation, extension of health insurance, disbursement of flexible employee funds, disbursement of the remaining days of leave, counseling support, and training programs.
As of 2020, GrabKitchen had footprints in 48 points across Indonesia.
See also: Tracking layoffs across Asia’s startup ecosystem
Grab previously said it had no plans to carry out mass layoffs amid the current economic conditions, when many other tech companies have had job cuts.
The company also announced its goal of hitting break even on a group-adjusted EBITDA basis in the second half of 2024.
Editing by Aditya Hadi and Miguel Cordon
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