Agoda cuts customer experience jobs in Singapore, Shanghai and Budapest amid cost review

Online travel agency Agoda has carried out job cuts across its customer experience group (CEG), affecting staff in Singapore, Shanghai and Budapest.

The retrenchment exercise, revealed during a virtual town hall on 4 August 2025, marks a significant restructuring of Agoda’s global operations.

An anonymous former employee told media that around 50 workers in Singapore were among those affected.

Management reportedly announced during the session that all CEG roles at the three offices would be eliminated.

Roles eliminated across functions

According to the former employee, the decision was attributed to “cost” issues and “recruitment challenges”.

The layoffs affected positions ranging from customer service specialists to regional managers.

Attendees at the online meeting said chat and microphone functions were disabled, limiting staff interaction and opportunities to raise questions.

The restructuring follows similar workforce consolidations across the global travel sector, as companies continue to reassess costs after the pandemic-driven recovery plateaued.

New sites open in lower-cost markets

The retrenchments coincide with Agoda’s expansion into lower-cost destinations.
Over the past year, the company has established new customer experience centres in Gurgaon (India), Foshan (China) and Cairo (Egypt).

Although management had earlier stated that the new centres were not direct replacements for existing sites, the timing of the closures raised concerns among staff.

Operating costs in these newer markets are substantially lower than in Singapore and Europe, where wages and compliance costs are higher.

A former employee noted that internal discussions suggested the Singapore-based CEG was initially formed to satisfy local workforce quota requirements.

This arrangement reportedly enabled Agoda to employ more foreign talent in its IT and engineering departments.

Workforce quota and regulatory factors

The retrenchment also comes amid regulatory changes to Singapore’s S Pass framework.

From 1 September 2025, new S Pass applicants must earn at least S$3,300 a month, according to the Ministry of Manpower (MOM).

Renewals will align with the same salary threshold from September 2026.

Industry observers note that such policy adjustments may affect companies with significant foreign workforces, potentially influencing restructuring decisions.

Some employees were encouraged to relocate to other Agoda hubs, particularly Bangkok, for continued career progression opportunities.

Severance agreement restrictions

Those affected by the layoffs were offered severance packages equivalent to one month of pay per year of service, alongside garden leave until 3 September 2025. However, a copy of the severance document shared with media revealed several restrictive clauses.

Employees were reportedly barred from filing claims, initiating legal action or contacting government agencies, unions or statutory bodies such as MOM or the Tripartite Alliance for Fair and Progressive Employment Practices (Tafep).

Any breach of these conditions would require repayment of severance payments and legal costs.

The document also instructed former staff to remove all references to Agoda from professional networking platforms such as LinkedIn.

Employment lawyers interviewed by local outlets said such clauses could raise concerns under fair employment and whistleblower protection frameworks.

Headquarters relocation amid cost concerns

While management cited financial constraints as the reason for job cuts, some employees questioned the company’s spending priorities.

Agoda is currently preparing to relocate its headquarters in Bangkok to the upcoming One Bangkok development, replacing its current office at Central World.

In a previous internal town hall, Agoda’s chief executive was quoted as saying the company would “spare no expenses for the new office”.

Former employees said the statement stood in contrast to the rationale of cost-cutting used to justify the layoffs.

The timing of the retrenchments has also raised questions about the company’s broader restructuring strategy.

The shift from high-cost operational centres to emerging market hubs mirrors a wider trend in the travel and technology industries, where firms are seeking efficiency through offshoring while balancing talent and regulatory requirements.

Ongoing response and enquiries

The Online Citizen has reached out to Agoda, MOM and Tafep for comment.
As of publication, no official statements have been issued by the company or the relevant agencies.

If confirmed, the retrenchment marks the second major round of layoffs at Agoda in recent years.

In 2020, the company reportedly reduced its workforce significantly in response to the collapse of global travel demand during the COVID-19 pandemic.

While the current cuts appear more targeted, the latest move highlights continuing challenges for multinational firms operating in Singapore’s tightening labour market, particularly in customer support and administrative functions.