Grab lays off 1,000 jobs: report

This represents 11% of its workforce.

Singapore ride hailing and food delivery app Grab Holdings has cut 1,000 jobs or 11% of its workforce, reports Reuters, based on a letter sent to employees on 20 June.

CEO Antony Tan claimed in a statement that the layoffs were needed to manage costs and ensure more affordable services long term.

ALSO READ: Grab co-founder Tan Hooi Ling to step down from operating roles

These cuts were reportedly the biggest since the start of the pandemic.

"Change has never been this fast. Technology such as generative AI (artificial intelligence) is evolving at breakneck speed. The cost of capital has gone up, directly impacting the competitive landscape," Tan was quoted saying in the letter.

ALSO READ: Grab's revenue more than doubles to $525m in Q1

Its shares were up 4.7% premarket after Tan's announcement to staff. The stock had climbed as much as 5.6% premarket.

Here’s more from Reuters.