MANILA, Philippines – Ride-hailing company Grab announced it would be cutting 360 jobs, or just under 5% of its workforce due to “the stark impact of COVID-19 on businesses globally, ours included.”

Grab CEO Anthony Tan said in a blog post on Tuesday, June 16, that “the pandemic will likely result in a prolonged recession and we have to prepare for what may be a long recovery period.”

“Over the past few months, we reviewed all costs, cut back on discretionary spending, and implemented pay cuts for senior management. In spite of all this, we recognize that we still have to become leaner as an organization in order to tackle the challenges of the post-pandemic economy,” he added.

Tan explained the measure was done in line with other initiatives – such as shutting down some non-core projects and right-sizing teams – to reduce the number of jobs cut.

To save more jobs, Grab also refocused its efforts on redeploying Grabbers “to meet the increased customer demand for deliveries.” (READ: Grab expands grocery delivery service GrabMart)

“We were able to save many jobs through this redeployment of resources and it helped limit the scope of the reduction exercise to just under 5%,” he said.

Tan also explained the severance process would include an enhanced separation payment, medical insurance coverage until the end of the year, and career transition and development support, among others.

Tan’s statement is available in full on the Grab Singapore blog. – Rappler.com