Grab Cuts 1,000 Jobs over Impact from New Technology and Rising Borrowing Costs

Singapore’s Grab Holdings is cutting 1,000 jobs to bring down costs and ensure affordable services in the long term.

The cut, which amounts to 11% of Grab’s workforce, is not a shortcut to profitability, according to the letter of the company’s chief executive Anthony Tan to his employees. The chief noted that new technology and rising borrowing costs caused the company to adapt promptly.

This is Grab’s biggest cut since the pandemic began in 2020 when the company cut 5% of its workforce or about 360 employees.

It is not just Grab that faced this difficulty. Indonesian ride-hailing firm GoTo laid off a thousand jobs last year and another 600 in March.

The food delivery firm Just Eat said that 1,870 jobs would be cut in the UK. Meanwhile, the U.S. ride-hailing Lyft is also cutting a quarter of its workforce or around 1,000 jobs.