Singapore ride-hailing agency Seize Holdings stated it’s reducing over 1,000 jobs or 11% of its workforce to chop prices and hold the corporate aggressive, in its greatest spherical of job cuts for the reason that pandemic
ByZEN SOO Related Press
HONG KONG — Singapore ride-hailing agency Seize Holdings stated it’s reducing over 1,000 jobs or 11% of its workforce to chop prices and hold the corporate aggressive, in its greatest spherical of job cuts for the reason that pandemic.
Seize CEO Anthony Tan stated in a letter despatched to workers late Tuesday that the job cuts weren’t a “shortcut to profitability” however a part of a basic restructuring of its working mannequin and prices.
“The first purpose of this train is to strategically reorganize ourselves, in order that we will transfer sooner, work smarter, and rebalance our assets throughout our portfolio in step with our long run methods,” Tan stated, describing the restructure as a “painful however needed step” for the long run.
Seize’s shares on NASDAQ had been up greater than 5% in premarket buying and selling, however declined almost 1.5% noon.
The Singapore-based firm began out as a taxi-hailing service in Malaysia in 2012, earlier than later increasing to ride-hailing, food supply and monetary companies throughout eight international locations in Southeast Asia, together with Indonesia, Malaysia and the Philippines. In 2018, it acquired rival Uber’s Southeast Asian operations after years of worth wars to carve out market share.
Seize has been slower than different know-how companies within the area in slashing jobs. The corporate initially stated final September that it had no plans for enormous job cuts.
Final 12 months, Singapore-based gaming and on-line retail agency Sea Ltd., axed 7000 jobs or about 10% of its workforce. Seize’s rival, Indonesian ride-hailing agency GoTo, had lower 12% of its workforce final 12 months and lower one other 600 jobs in March.
Though Seize reported a 130% rise in income to $525 million for its quarter ended March, it additionally clocked a lack of $250 million from the identical time final 12 months.
Seize is probably grappling with slowing development, amid greater inflation charges and prices of residing, in addition to stiff competitors from rivals reminiscent of GoTo. Its gross merchandise worth – which calculates the full greenback worth of transactions by Seize customers – rose simply 3% for the quarter. Spending per consumer was down 4% in comparison with the identical time final 12 months.
In February, Seize introduced ahead its profitability purpose, anticipating to interrupt even within the remaining quarter of 2023. It beforehand anticipated to show worthwhile within the second half of 2024.