Times are hard these days. There are still companies, even the big names, that are still recovering from the Covid-19 lockdown. Despite the halt in production, and distribution, as well as the low number of customers, companies like Karex and Mydin managed to get back on their feet by pushing forward and coming up with solutions to adapt to the situation.
To keep a company alive, sometimes, sacrifices must be made and that includes reducing the workforce. By laying off some employees, a business can save some money to invest in improving its services and quality, but on the downside, it means double work for those who are still working there. Grab is currently undergoing some cost-cutting changes but will they be laying off employees as well? Here’s what we know:
According to Reuters, Grab Holdings is currently cutting more costs to cope with an uncertain economic backdrop. In an internal memo shared with its employees, the e-hailing and food delivery firm will freeze most hiring, freeze senior managers’ salary, and cuts travel and expense budgets.
“None of these decisions were easy, but are meant to help us get leaner and fitter, as we accelerate even faster towards sustainable, profitable growth,” the memo reads. The cost cuts did however raise some concerns over employees’ job status. Will they eventually be let go? Or will there be a cut in their salary?
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It was not explicitly mentioned in the memo if employees will be laid off, however, Anthony Tan, Co-Founder and Group CEO of Grab, reminded employees that they “need to adopt a frugal and prudent mindset as we prepare for 2023”. The content of this memo was confirmed by a Grab spokesperson, according to Reuters.
At the time of writing, there has been no information or updates from employees themselves if they’ve been laid off. In other cost-related news, earlier this year, frequent Grab users noticed a drastic increase in Grab ride fares, especially during peak hours.
The company released a statement saying that the sudden price fluctuations were due to a shortage of drivers on the road to meet the “sharp increase” in ride demand from passengers. Back in June, the e-hailing firm also came up with a RM1K bonus for new driver-partners amid a shortage of drivers.
Sources: Reuters
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