GRAB Holdings Inc will let go more than 300 employees throughout the region, including Malaysia, in a bid to survive the fallout from the Covid-19 pandemic.

This will affect nearly 5% of its workforce, Grab CEO and co-founder Anthony Tan said in a note about layoffs to employees earlier today.

“We will be communicating directly with affected employees over the next few days. Out of respect for what impacted Grabbers are going through, we won’t be commenting further,” a Grab Malaysia spokesman told The Malaysian Insight.

Tan’s note, sighted by The Malaysian Insight, said the group had tried everything possible to avoid the move and those affected will receive an email by 1pm today. 

“From the moment we began navigating through this global health crisis, I hoped I would not have to send a note like this. It is with heavy heart that I share with you today that we will be letting go about 360 Grabbers, or just under 5% of our employees,” he said. 

“We understand this news will cause anxiety and dread. Please know that we did not come to this decision lightly. We tried everything possible to avoid this but had to accept that the difficult cuts we are making today are required, because millions depend on us for a living in this new normal.”

Severance payment of half a month will be paid for every six months of completed service, or based on local statutory guidelines, whichever is higher, Tan said.

Additionally, affected staff will also be paid an enhanced separation payment equivalent to about 1.5 months salary and bonus for work done in this year.

“(There is also a) waiver of annual cliffs for equity vesting, so that more (employees) can leave as shareholders. This means that your outstanding unvested equity will vest monthly until your last date of employment,” Tan said. 

Other severance benefits offered are medical insurance coverage until the end of the year or a equivalent stipend, encashment for maternity and paternity leave, encashment of unused accrued annual leave and GrabFlex credits, as well as career transition and development support.

“(You will be able to access) emotional support via the Grabber Assistance Programme for three months after your last date of employment. Finally, you can opt to keep your laptops to help you in your search of your next adventure,” Tan added.

Tan said the pandemic will result in a prolonged recession and Grab had to prepare for what is likely to be a long recovery period. 

He added that the ride-hailing giant has reviewed costs, reduced discretionary spending and implemented pay cuts for senior management over the past few months.

“In spite of all this, we recognise that we still have to become leaner as an organisation in order to tackle the challenges of the post-pandemic economy,” he said. 

Tan assured staff that this would be the last organisation-wide layoff in 2020. 

Grab will also be ceasing some non-core projects, consolidating functions for greater efficiency and right-sizing teams.

It will also increase its delivery verticals and redeploy employees to meet increased customer demand for deliveries. 

Tan said the redeployment of resources has saved many jobs and limited the scope of reduction of the workforce to under 5%. 

Grab is backed by SoftBank Group Corp, which reported a net loss of ¥1.43 trillion (RM56.87 billion) in the first quarter of this year. 

Touted as the most valuable start-up in Southeast Asia, Singapore-based Grab was last valued at US$14.3 billion. – June 16, 2020.