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- Southeast Asia's biggest ride-hailing and food delivery firm Grab Holdings Limited (NASDAQ:GRAB), introduced cost-cutting measures to beat the macro headwinds.
- Grab's measures included a freeze on most hirings, salary freezes for senior managers, and cuts in travel and expense budgets, Reuters reported citing the CEO's internal memo.
- CEO Anthony Tan said, "More so than ever, all Grabbers need to adopt a frugal and prudent mindset as we prepare for 2023."
- Also Read: Lyft To Let Go Of 13% Of Workforce, Divest Vehicle Business To Beat Slowdown
- In November, 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.
- Southeast Asia has not, and will not, be spared from rising prices and interest rates and the consequent effects on growth, Tan said.
- Grab tried to stem losses by focusing on higher-paying customers and lowering incentive spending.
- Grab, which operates in 480 cities in eight countries, had about 8,800 staff at the end of 2021.
- Grab would "freeze the majority of current open job requisitions which are not in offer stage."
- Certain leaders at the company would not be eligible for raises in their upcoming reviews, while another 20% will reduce the travel and expense budget from the last guidance.
- Tan said the company has been prudent with its spending over the past two years, streamlining some businesses, tapering incentives, and slowing down hiring. Tan said these measures helped Grab get closer to its profitability goals.
- Price Action: GRAB shares traded lower by 1.77% at $3.25 premarket on the last check Thursday.
- Photo via wikimedia Commons
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