Agoda confirms layoffs in Singapore, Shanghai and Budapest amid operational restructuring
Online travel agency Agoda has confirmed layoffs across its offices in Singapore, Shanghai and Budapest, describing the move as part of a global restructuring for greater efficiency. However, reports of restrictive clauses in severance agreements have prompted concern from employees and authorities.
- Around 50 Singapore-based staff from Agoda’s Customer Experience Group were laid off in August.
- Severance agreements reportedly barred staff from contacting MOM, TAFEP, or pursuing legal claims.
- Agoda insists affected workers were free to seek help and that retrenchments followed industry standards.
SINGAPORE: Online travel agency Agoda confirmed on 17 September 2025 that it had carried out layoffs in Singapore, Shanghai and Budapest.
A spokesperson said the move was part of the company’s “continuous improvement drive to enhance operational efficiency” and insisted affected staff were supported during the transition.
“During this time, employees were free to seek alternative legal options or engage with local authorities if they so wished.”
Earlier the same day, The Online Citizen reported claims from a former employee that jobs across the Customer Experience Group (CEG) were cut.
The decision was first conveyed during a virtual town hall on 4 August. About 50 employees in Singapore were affected.
Roles eliminated included customer specialists and regional managers, covering multilingual teams supporting travellers.
Severance packages and restrictions
Impacted employees were offered one month of severance pay per year of service, with garden leave until 3 September. However, the severance agreement shared with media contained clauses restricting legal recourse.
The terms barred staff from filing claims, pursuing legal action or contacting statutory bodies such as the Ministry of Manpower (MOM), the Tripartite Alliance for Dispute Management (TADM) and the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP).
The agreement also required staff to remove all references to Agoda from LinkedIn and other online platforms.
Breaches would result in repayment of severance sums and legal fees, with the company entitled to recover costs as debts.
Company response to concerns
In response to queries from TOC, Agoda confirmed the retrenchments and said: “We have phased out customer support roles in our offices in Budapest, Shanghai, and Singapore while creating new positions in other geographic locations. This move is designed to consolidate our customer support teams in areas where we have the strongest operational flexibility and capability as we continue to grow our business.”
The spokesperson added that the firm was “committed to retaining a strong local presence in Singapore” and that all measures were taken “in line with industry standards”.
However, the spokesperson did not address questions on why restrictive clauses appeared in the severance agreements, nor on allegations related to workforce quotas.
Staff accounts said all CEG roles in the three affected cities were eliminated. Management cited cost concerns and recruitment challenges.
According to sources, the announcement meeting disabled chat functions and microphones, limiting interaction.
The layoffs came amid Agoda’s expansion of customer service hubs in Gurgaon, Foshan and Cairo.
Although management previously denied these centres were replacing existing ones, the timing raised questions.
Operating costs in India, China and Egypt are lower than in Singapore and Europe, employees observed.
Workforce quota issues raised
The anonymous source also suggested that the Singapore-based CEG was established primarily to meet workforce quota requirements, enabling Agoda to hire more foreign IT and engineering staff.
Internal meetings reportedly encouraged career-minded employees to relocate to Bangkok for better opportunities.
The source suggested changes in S Pass rules may have influenced the decision.
From 1 September 2025, new S Pass applications must meet a minimum salary of S$3,300, with renewals subject to the same threshold from September 2026.
Spending priorities questioned
Employees also questioned the company’s financial priorities. Despite citing costs as the reason for retrenchments, Agoda is preparing to relocate its Bangkok headquarters to the high-profile One Bangkok development.
The move will replace its existing office at Central World.
At a previous town hall, Agoda’s chief executive reportedly said the company would “spare no expenses for the new office.”
