The headquarters of Seize Holdings Ltd., in Singapore. Seize Holdings Ltd., reported its newest earnings on Feb. 23, 2023.
Bryan van der Beek | Bloomberg | Getty Photographs
Singapore-based Seize Holdings is chopping over 1,000 jobs, its CEO stated Tuesday, in a bid to handle prices and reorganize the corporate in a aggressive panorama.
In an e mail to workers, CEO Anthony Tan stated the layoffs are a “painful however crucial step” that the ride-hailing and meals supply app operator should take to stay aggressive sooner or later.
“The first aim of this train is to strategically reorganize ourselves, in order that we will transfer sooner, work smarter, and rebalance our assets throughout our portfolio consistent with our long run methods,” stated Tan.
That is the group’s largest spherical of layoffs since 2020, when it minimize 360 jobs in response to Covid-19 pandemic challenges.
Even with out layoffs, Tan stated Seize is on observe to hit breakeven this 12 months on group adjusted earnings earlier than curiosity, taxes, depreciation, and amortization. In February, the corporate stated it was bringing ahead its goal to the fourth quarter of 2023, half a 12 months sooner than its earlier steering.
The CEO stated the job cuts should not a “shortcut to profitability” however will allow Seize to adapt to the enterprise atmosphere and fast emergence of A.I.
Tan stated Seize will present severance fee of half a month for each six months of accomplished service, or primarily based on native statutory tips, whichever is greater. Laid off employees may also obtain medical insurance coverage protection till the tip of the 12 months, repatriation assist in addition to profession transition and improvement assist, amongst different measures.
The announcement comes after Seize’s COO Alex Hungate informed Reuters in September that the corporate doesn’t count on to conduct mass layoffs regardless of weaker financial circumstances. Hungate stated Seize was “very cautious and considered about any hiring.”
Main U.S. tech corporations like Amazon and Meta went on a hiring spree through the pandemic as lockdowns boosted enterprise. Many later laid off hundreds of employees as enterprise circumstances reverted to or approached pre-pandemic circumstances.
Seize posted robust income development and narrowed losses for 2022, citing a rebound in mobility demand.
Tuesday’s announcement is the most recent spherical of layoffs from a significant Southeast Asian tech firm. In March, Indonesia’s GoTo introduced it was shedding 600 staff to spice up profitability, Reuters reported, whereas Singapore-based Sea minimize greater than 7,000 jobs within the final six months of 2022.
