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Telegram分享群组(www.tel8.vip):Grab to implement cost cuts, CEO memo shows

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Grab's measures include a freeze on most hirings, salary freezes for senior managers and cuts in travel and expense budgets, according to the memo. — Bloomberg

SINGAPORE: Grab Holdings Ltd, South-East Asia’s biggest ride-hailing and food delivery firm, is rolling out cost-cutting measures to cope with an uncertain macroeconomic situation, the company’s chief executive tells staff in a memo.

The measures include a freeze on most hirings, salary freezes for senior managers and cuts in travel and expense budgets, according to the memo, whose contents were confirmed by a company spokesperson.

“None of these decisions were easy, but are meant to help us get leaner and fitter, as we accelerate even faster towards sustainable, profitable growth,” chief executive officer Anthony Tan said in the memo, which was sent to the staff on Wednesday and was viewed by Reuters.

“More so than ever, all Grabbers need to adopt a frugal and prudent mindset as we prepare for 2023.”

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Last month, Grab raised its 2022 revenue forecast, reported a narrower adjusted operating loss and said its food and grocery delivery business broke even three quarters ahead of the company’s expectations.

Tan said in the memo that South-East Asia has not, and will not, be spared from rising prices and interest rates, and the consequent effects on growth.

Grab’s new measures “will also help us avert knee-jerk reactions that may interrupt our plans down the road,” he said.

Decade-old Grab, a household name in eight South-East Asian countries, has been trying to stem losses by focusing on higher-paying customers and lowering spending on incentives.

Grab, which operates in 480 cities in eight countries, had about 8,800 staff at the end of 2021. — Reuters


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