Heaptalk, Jakarta — A Singapore-based ride-hailing company, Grab, has declared to execute a layoff consideration for its business unit, GrabKitchen – a kitchen rental division for delivery service, as this service unit will be closed on December 19th, 2022. The layoff determination is estimated to impact around 10 to 20 employees of Grab.
Established in 2018, this business line-up of Grab is considered to generate inconsistent performance, particularly since the transition matter to a light asset business model. As cited by katadata.co.id, the Chief Communications Officer of Grab Indonesia, Mayang Schreiber, affirmed the situation had pushed the Grab team to execute a layoff determination, estimated to deliver a worse impact on dozens of Grab’s employees.
Despite making this difficult decision, this decacorn company will continue to provide opportunities for affected employees to fill available positions in other divisions of the Grab ecosystem. In contrast, other workforces who decide to seek job opportunities in different companies will be granted worthy compensation and fulfillment of company obligations under existing regulations.
“We will also provide additional compensation beyond the allowances that have been set. This effort is expected to bolster our affected team during these complicated circumstances. For this reason, we are grateful for the companionship established so far,” Mayang said in her statement.
Related to the additional compensation, Grab will provide a Goodwill Payment with an appropriate nominal, aligned with the company policy and further compensation regarding the Notice Payment period devoted to the employees. On the other hand, the impacted workforce will also be granted a health insurance renewal until December 31st, 2022.
Simultaneously, the company will deliver a flexible fund disbursement (GrabFlex) compensation and furnish counseling support through a Grabber Assistance Programme dedicated to the impacted employees. In addition, they enable the disbursement of remaining days of annual leave, maternity leave for mothers, and paternity leave. The Grab party also intends to conduct several training activities to assist the impacted workforces, spanning career planning, job hunting technique, and personal branding facility.
Previously, this super-app affirmed not to join the mass layoff trends around the technology company ecosystem by executing a business strategy, one of which is strongly selective to hire new workforces at any level. The company also decided to minimize its firm intention for the financial technology sector while focusing on more profitable business units. However, the inconsistency of GrabKitchen’s performance over the four years of operations has led the company to consider this complex consideration.