27-6-2023 (MANILA) Grab Philippines has reaffirmed its dedication to achieving its target of generating 500,000 job opportunities in the country, even amidst the parent company’s restructuring efforts that have resulted in layoffs across Southeast Asia.
While the company has confirmed the occurrence of layoffs in its Philippine business, it has refrained from disclosing the exact number of employees affected.
In a statement released on Monday, the dominant super app operator in the local ride-hailing market emphasized the significance of the Philippine market and expressed its unwavering commitment. Grace Vera-Cruz, Country Head of Grab Philippines, stated, “We remain steadfast in our promise to create 500,000 livelihood opportunities in the Philippines and will continue to make progress on this by creating meaningful opportunities for everyday Filipinos and small businesses to earn a livelihood on our platform, whether as a driver-partner, delivery partner, or merchant partner.”
Grab’s CEO, Anthony Tan, recently announced that approximately one thousand employees were laid off as part of the company’s efforts to enhance cost efficiency. The restructuring initiative comes in response to Grab’s ongoing financial losses in the first quarter. Despite an improved performance compared to the same period last year, with a loss of $250 million (compared to a $435 million loss previously), Grab’s bottom line was still impacted by losses from fair value changes on investments and higher expenses. To address the anticipated growth in operations with a leaner workforce, Tan mentioned that streamlining processes had already been initiated over the past year. “The primary goal of this exercise is to strategically reorganize ourselves, so that we can move faster, work smarter, and rebalance our resources across our portfolio in line with our longer-term strategies,” explained Tan.
As part of its commitment to support the affected employees, Grab will provide financial assistance, including severance pay. Former employees will also be entitled to encashment of unused accrued annual leave and maternity or paternity leaves, among other benefits. Additionally, their medical insurance coverage will be extended until the end of the year, subject to local insurance terms.
Vera-Cruz emphasized Grab’s awareness of the challenges posed by such changes and reassured that the welfare of the affected employees was a top priority. “We are aware that change may be incredibly challenging, and we are prioritizing the welfare of the Grabbers who were affected by the restructuring exercise,” Vera-Cruz stated.
