Grab Philippines reaffirmed its commitment to its goal of creating 500,000 job opportunities in the country, despite the recent restructuring activity undertaken by its parent company, resulting in layoffs of employees across Southeast Asia. While the company confirmed the layoffs in the Philippine business, they did not disclose the exact number.
In a statement released on Monday, Grab Philippines, the dominant player in the local ride-hailing market, emphasized the importance of the Philippine market and expressed its determination to continue creating meaningful opportunities for Filipinos and small businesses. Grab Philippines Country Head, Grace Vera-Cruz, stated that they would strive to provide livelihood opportunities as driver-partners, delivery partners, or merchant partners on their platform.
Grab CEO Anthony Tan explained that the decision to lay off a thousand employees was driven by the need for cost efficiency. The restructuring was initiated due to ongoing losses in the company’s first quarter performance.
During the first quarter, Grab reported a loss of $250 million, an improvement from the $435 million loss in the same period the previous year. Despite the losses, the company experienced revenue growth across all segments, with a 130 percent increase to $525 million.
Factors such as losses from fair value changes on investments and higher expenses impacted the company’s overall financial performance. In response to projected operational growth with a reduced workforce, Grab had already begun streamlining processes in the past year.
CEO Anthony Tan highlighted that the primary objective of the restructuring was to strategically reorganize the company, enabling it to operate more efficiently and allocate resources in line with long-term strategies.
Grab emphasized its commitment to supporting the affected employees by providing financial assistance, including severance pay. Former employees will also receive encashment for unused accrued annual leave and maternity or paternity leaves. Additionally, Grab intends to extend their medical insurance coverage until the end of the year, as much as possible, in accordance with local insurance terms.
Vera-Cruz acknowledged the challenges that come with change and assured that Grab prioritizes the welfare of the affected employees who were part of the restructuring exercise.