Update (Dec. 15, 5:50 p.m. SGT): This article was updated to include a response from Grab.
Grab, the Singapore-born super app, is planning to implement several cost-cutting measures amid the current macroeconomic downturn, its group CEO and co-founder Anthony Tan told employees in a memo seen by Reuters.
While there were no mentions of layoffs, the US-listed company is rolling out merit increase freezes for senior positions as well as cuts in travel and team engagement budgets. It’s also looking to undergo a hiring freeze for the majority of its open positions.
In a statement to Tech in Asia, a Grab representative said that the firm is “taking proactive steps to prepare ourselves for uncertainty in 2023.” The company also said it’s committed to achieving “sustainable, profitable growth.”
In the memo, Tan noted that the decision was not easy to make, but he said that Grab needed to “adopt a frugal and prudent mindset” as it enters 2023. The CEO added that Southeast Asia as a whole was not immune to rising prices and interest rates.
The development comes after the company reported revenue of US$382 million for the third quarter of 2022, up 143% from a year ago. Its adjusted EBITDA also improved 24% year on year to a loss of US$161 million.
See also: Grab delivers the goods in its Q3 results, talks up ads business
In July 2020, Grab laid off 360 employees, which was under 5% of its workforce at the time.
Editing by Thu Huong Le and Lorenzo Kyle Subido
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