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 Photos
Singapore-based Seize Holdings is reducing over 1,000 jobs, its CEO mentioned Tuesday, in a bid to handle prices and reorganize the corporate in a aggressive panorama.
In an e-mail to workers, CEO Anthony Tan mentioned the layoffs are a “painful however obligatory 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 are able to transfer sooner, work smarter, and rebalance our sources throughout our portfolio according to our long run methods,” mentioned Tan.
That is the group’s largest spherical of layoffs since 2020, when it reduce 360 jobs in response to Covid-19 pandemic challenges.
Even with out layoffs, Tan mentioned 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 mentioned it was bringing ahead its goal to the fourth quarter of 2023, half a 12 months sooner than its earlier steerage.
The CEO mentioned the job cuts aren’t a “shortcut to profitability” however will allow Seize to adapt to the enterprise surroundings and speedy emergence of A.I.
Tan mentioned Seize will present severance cost of half a month for each six months of accomplished service, or based mostly on native statutory tips, whichever is larger. Laid off employees may also obtain medical insurance coverage protection till the top of the 12 months, repatriation help in addition to profession transition and improvement help, amongst different measures.
The announcement comes after Seize’s COO Alex Hungate advised Reuters in September that the corporate doesn’t anticipate to conduct mass layoffs regardless of weaker financial situations. Hungate mentioned Seize was “very cautious and even handed about any hiring.”
Main U.S. tech companies 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 situations reverted to or approached pre-pandemic situations.
Seize posted sturdy income progress and narrowed losses for 2022, citing a rebound in mobility demand.
Tuesday’s announcement is the newest spherical of layoffs from a significant Southeast Asian tech firm. In March, Indonesia’s GoTo introduced it was shedding 600 workers to spice up profitability, Reuters reported, whereas Singapore-based Sea reduce greater than 7,000 jobs within the final six months of 2022.