Affected By The Corona Crisis, Grab Laid Off 360 Employees

Online motorcycle taxi drivers (Angga Nugraha / VOI)

JAKARTA - No one suspected that the ride-hailing company Grab was forced to take the termination of employment (PHK) for its 360 employees. This step came due to the economic crisis of the coronavirus pandemic.

Grab founder or co-founder, Anthony Tan, announced at a large meeting of his company today that was disappointing. The number of five percent of employees in question is about 360 people who have been laid off.

"With a heavy heart, I announce today that we will release around 360 Grabbers, or about less than 5 percent of the total number of Grab employees," said Anthony in his official statement, Tuesday, June 16.

Anthony admitted that this decision was very hard for him. Moreover, the impact of this pandemic is really felt for the company he heads. He also said he had reduced commissions with driver partners and changed the incentive scheme.

"Every affected Grabber has contributed to building Grab into the versatile application it is today. We are very grateful for all your efforts and we will do all we can to help you get back on your feet," added Anthony.

This shuttle service has also done various methods, but ultimately has to make this decision. Anthony explained that the demand for online transportation mode services is still the main business, but Grab has experienced a decline due to the impact of the COVID-19 pandemic.

"We have to admit that this sizeable cut is urgently needed, as millions of people depend on us to become the new normal at this time. Since February, the impact of COVID-19 on global business has begun to show, including in us. At the same time. it is increasingly clear that this pandemic will result in a long recession and we must prepare it for a period of recovery that may be very long, "said Anthony.

Seeing this impact, Grab has also cut several development projects including non-essential operational costs. However, Anthony did not leave his hands when laying off Grab employees, he also announced an assistance scheme.

Employees who are laid off will still receive half their salary every month for the next six months including bonuses in the 2020 period including the opportunity to become shareholders. This means that Grab will provide a waiver of annual cliffs for providing equity with the aim that more Grabbers will leave as shareholders. This means that the former employee's outstanding unvested equity can make an equity vest every month until the last date of service.

Career transition and development support for affected Grabbers in the form of job placement support from the Grab Talent Acquisition team and creation of a Talent Directory which allows prospective recruiters and companies to contact Grabbers who have been laid off.

Even though they have taken the step of dismissal, Grab has not left their responsibilities to employees. Grab will still provide financial, professional, medical and emotional support for affected employees.

Grab Online Ojek Driver (Irvan Meidianto / VOI)

Among other things, severance pay in the form of half a month's salary for every 6 months of service or based on applicable regulations, the larger amount will be chosen.

Then, the additional payment that has been increased is equivalent to 1.5 months of salary on top of the severance pay. "As additional assistance during this Covid-19 crisis and a bonus for work carried out in 2020," he explained.

Then, waiver of annual cliffs to provide equity with the aim of making more employees leave as shareholders. Anthony continued that health insurance coverage will also be provided until the end of the year or the provision of cash equivalents, so that affected employees can get peace of mind through this uncertain period.

"I ensure that there will be no more layoffs in the organization as a whole this year and I am sure, by carrying out the latest plans to meet the targets that have been set, we will not go through this painful process again in the future," he concluded.