Ride hailing company Grab has announced it will lay off more than 300 employees due to the effects of the coronavirus.
The company, backed by Softbank, said it would cut about five per cent of its workforce after the ride hailing industry has taken a significant hit from the pandemic.
Grab is Southeast Asia’s most valuable startup, with a valuation of $14bn (£11.1bn). The Singapore-based company is active in eight countries.
It said it would be “sunsetting non-core projects, consolidating teams and pivoting to focus on deliveries,” a spokeswoman said.
According to Reuters sources, the company currently has about $3bn in reserves.
It is the latest setback for a company backed by Softbank, which has blamed the coronavirus pandemic for the poor performance of some of its investment arm’s largest investments such as Wework and Oneweb.
Uber, another recipient of Softbank money, has also taken a battering during the pandemic, and has been forced to cut jobs.
The impact in Southeast Asia has been severe, with 11 drivers for Grab and rival Gojek telling Reuters last week they had their income slashed by more than half during the outbreak.