Grab Will Reportedly Cut Costs & Freeze Salaries, CEO Cites Uncertain Economic Situation

Grab Will Reportedly Cut Costs & Salaries Due To Volatile Economic Situation

On Wednesday (14 Dec), Grab reportedly announced that it would cut costs to cope with the uncertain economic situation.

According to a memo by chief executive officer (CEO) Anthony Tan, the measures include cutting travel and expense budgets and freezing salaries and hiring.

CEO says cutting costs was a difficult decision

Citing a memo by Mr Tan, Reuters reported that he described introducing the measures as “a difficult decision”.

Source: Business Insider

But he explained that the company did so to help Grab “get leaner and fitter” as they “accelerate even faster towards sustainable, profitable growth”.

Grab apparently sent the memo to staff on Wednesday (15 Dec).

Mr Tan also emphasised that employees need to adopt a “frugal and prudent” mindset as 2023 approaches.

Raised 2022 revenue projection in November

Just last month, Grab raised their 2022 revenue projection, reporting a smaller adjusted operating loss.

Besides that, they claimed that their food and grocery delivery business side managed to break even three quarters earlier than anticipated.

In the memo, Mr Tan stated that Southeast Asia will not be spared from rising prices and interest rates.

He also explained how the new measures will “avert knee-jerk reactions” that may interrupt future plans.

Grab has purportedly been trying to reduce losses by concentrating on higher-paying customers and cutting back on incentives.

Their Singapore office employed over 8,800 staff at the end of 2021.

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Featured image adapted from Grab.