Did Grab drive itself into a corner?

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Hello reader,

Whether the saying “underpromise and overdeliver” is actually effective, I’m not too sure, but it applies to almost everything – work, personal relationships, or anything in between.

While this might sound like you’re not being honest about your true capabilities to the other party, I’d say that it’s not about lying to them. Rather, it’s about preventing yourself from overpromising something that you don’t know is even possible.

In other words, the saying is about playing it safe but still going the extra mile.

This was my first thought when I heard the news earlier this week that Grab was conducting layoffs. Its C-suite executives previously said that it was not following in the footsteps of other major tech firms and cutting staff, and yet here we are.

In some ways, the company made a statement that it didn’t fulfill. And yes, while things can change – and there are probably many valid reasons for that – many people won’t see this as just another round of layoffs. Instead, they’ll think of it as Grab being unable to follow through on what it said.

Tough luck.

Today we look at:

• Grab joining the growing list of companies that are conducted layoffs this year
• Hodlnaut possibly getting shut down
• Other newsy highlights such as StashAway’s latest financial figures and a strategic investment in Viu.

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Grab lets go

Image credit: Timmy Loen

One of the first questions we need to ask about Grab’s layoffs is: Was the move – cutting around 1,000 people – done to achieve profitability? While the situation is surely complex, and there are many questions left to be answered, here’s what we know for now.

• For the record: Last September, Grab COO Alex Hungate said that the firm didn’t “see [itself] in that category” of companies that conducted mass layoffs. He added that the firm had not gotten to a “desperate” point of needing to freeze hiring or decreasing its headcount.
• If the shoe fits: CEO Anthony Tan has said that the retrenchments are not a “shortcut to profitability.” However, based on our rough calculations (using Grab rival GoTo as a benchmark), the company could save around US$14 million from the measure.
• Other reasons: According to Tan, there are several other factors – not related to profitability – that led to the decision, and one of them was the increasing cost of capital. While that makes sense, several questions remain.

Goodbye Hodlnaut?

All eyes on generative AI in Southeast Asia

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