The headquarters of Grab, a Singapore-based transport network vehicle service, recently announced a mass layoff, causing concern among Grab Philippines workers.
Confirming the impact on their operations, Grab Philippines released a statement but did not disclose the number of possible job losses.
"[We] can confirm that the Philippines is affected too — but again, we won’t be providing any numbers or breakdowns," Grab Philippines said.
The transport network company stated that they have already sent notices to their employees regarding the upcoming layoffs.
Grab emphasized the difficulty they face in letting go of some of their employees. The company's CEO, Anthony Tan, previously announced on Tuesday that 1,000 Grab employees would lose their jobs.
"I have difficult news to share today. We are letting over 1,000 Grabbers go," he wrote.
"We are informing you after office hours for as many of our locations as possible, so you have the space and time to process the news privately," the statement added.
Tan clarified that the mass layoff was not a shortcut to increase their profits but a result of their high capital expenses combined with the rapid rise of generative artificial intelligence (AI).
"I want to be clear that we are not doing this as a shortcut to profitability. Over the past couple of years we’ve been consistent in managing costs tightly in all areas of our operations and on improving platform efficiency," said the CEO.
"We must adapt to the environment in which we operate. Change has never been this fast. Technology such as Generative AI is evolving at breakneck speed. The cost of capital has gone up, directly impacting the competitive landscape," Tan pointed out.
DICT, DOLE urged to check PH employees
Due to the implications for Grab Philippines, advocacy group "Digital Pinoys" called on the Department of Information and Communications Technology (DICT) and the Department of Labor and Employment (DOLE) to examine the affected employees' situation.
They also urged the government agencies to ensure Grab complies with Philippine laws regarding mass layoffs.
Ronald Gustilo, the national campaigner of Digital Pinoys, expressed concern about the promise made by Grab to create 500,000 jobs, as stated by President Ferdinand Marcos in February.
“The news of the massive layoff set to be implemented by Grab will put into question their ability to deliver their investment pledge. The government should also consider if the service quality for Grab’s customer passengers and their drivers and drivers will get affected if the layoff will affect the operations of Grab Philippines," Gustilo said.
Tan assured President Ferdinand Marcos earlier that Grab would find ways to generate new jobs not only in Metro Manila but also in provinces such as Davao, Cebu, and Iloilo.
Gustilo urged the government to ensure that Grab's service to its customers remains unaffected by the mass layoffs if their drivers are affected.
