Despite a sluggish market, Grab expects no significant layoffs.

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Last Updated on September 26, 2022 by Bitfinsider

The largest ride-hailing and food delivery company in Southeast Asia, Grab, is selectively hiring while restraining its ambitions to enter the financial services industry. Grab does not anticipate having to implement mass layoffs as some competitors have done.

Because Grab had been “extremely careful and judicious about any hiring” earlier in the year when it was concerned about a worldwide recession, it had avoided reaching the “desperate” position of a hiring freeze or mass layoffs, according to chief operating officer Alex Hungate.

According to him, the corporation was hiring for positions in data science, mapping technology, and other specialized fields, however every recruitment now involved more consideration than it once did.

At the end of 2021, Grab, a well-known brand in Southeast Asia for a decade, employed roughly 8,800 people. Like its competitors, it has benefited from the COVID-19 pandemic’s surge in food services while ride-hailing has suffered.

Demand for food delivery is decreasing as economies expand, while ride-hailing hasn’t fully recovered. Inflation, slowing GDP, and rising interest rates have all appeared as threats, and tech values have also dropped significantly.

The largest e-commerce company in Southeast Asia, Shopee, recently laid off employees and closed some international operations after parent company Sea announced rising losses and abandoned its annual e-commerce forecast.

As Grab scrambles to become profitable, Hungate, a veteran of the financial services, logistics, and food industries, has led a drive away from low-margin business lines.

The second-quarter loss decreased from US$801 million to US$572 million. However, it reduced its forecast for the year’s gross merchandise volume last month, blaming a strong currency and declining demand for food delivery.

Grab announced last month that it was closing dozens of “dark stores”—distribution centers for on-demand groceries—and was delaying the launch of its “cloud kitchen,” a network of centralized facilities for delivery.

This year, Grab reorganized its fintech division to concentrate on more lucrative areas, and Reuters reported that some senior executives had left the company.

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