Agoda axes 50 S’pore staff; MOM looking into claims of workers being told not to contact authorities

SINGAPORE – Online travel platform Agoda said on Sept 17 that it has phased out customer support roles in Singapore, Shanghai and Budapest.

In response to queries from The Straits Times, Agoda said this is in line with its “continuous improvement drive to enhance operational efficiency”.

While it did not say how many employees were affected, it also said it is creating new positions in other 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,” it said.

The company added that it “remains committed to retaining a strong local presence in Singapore and continues to follow relevant local laws”.

On Sept 17, The Business Times reported that about 50 Agoda employees in Singapore have been retrenched.

According to the report, which cited sources, employees were informed during a virtual town hall on Aug 4 that customer experience group (CEG) employees in Singapore, Shanghai and Budapest would be retrenched.

Management cited “cost” issues and “recruitment challenges” as reasons for the move.

All CEG roles in the three locations would be eliminated, the BT report said, citing management, which informed employees of the decision. It added that affected roles included customer service specialists and regional managers.

A check on Agoda’s careers platform shows that the company is still hiring for customer experience roles in other countries, including Japan, South Korea and Bangkok.

In a severance document seen by BT, affected staff were instructed not to report the retrenchment to government agencies, statutory bodies and trade unions such as the Ministry of Manpower (MOM) or the Tripartite Alliance for Fair and Progressive Employment Practices (Tafep).

Those who do so will have their severance benefits revoked, the report said, noting that Agoda will seek an income tax waiver on the layoff compensation.

The document also states that employees affected by the layoffs who attempt to make a claim against Agoda will indemnify the company for its costs incurred as a consequence of such action.

This would include, but is not limited to, legal costs, compensation and damages orders.

In response to queries, MOM said that it is looking into this matter, alongside Tafep.

“It is inappropriate for employers to include provisions that discourage or inhibit employees from approaching the authorities for all situations and this runs counter to the spirit of fair and responsible employment practices,” said an MOM spokesperson.

The ministry takes a serious view of such conduct, added the spokesperson, as it undermines trust in the employment framework and the avenues available for workers to seek support.

“Where necessary, we will not hesitate to take action,” the spokesperson said.

National Trades Union Congress (NTUC) secretary-general Ng Chee Meng and Singapore Industrial and Services Employees’ Union (SISEU) executive secretary Desmond Tan said in a joint statement that they were appalled by Agoda’s alleged unfair and irresponsible retrenchment practices.

“This practice, if true, is irresponsible and regrettable,” they said, adding that this goes against a fundamental right of every worker to seek redress when they face workplace issues.

“It also runs counter to the principles of fair and progressive employment practices that we expect of all responsible employers in Singapore.”

They added that they were deeply concerned that Agoda had allegedly sought to deny workers access to grievance handling and dispute resolution support, “especially at a time when they most need it”.

“Workers must never be made to feel threatened or silenced when exercising their rights,” they said.

In its statement, Agoda said that impacted employees “were given every support throughout the transition process in line with industry standards”. It also noted that employees were free to seek alternative legal options or engage with the local authorities if they so wished during this time.

However, Agoda said it is unable to comment further on individual settlement agreements to respect employee privacy.

While Agoda is not unionised, NTUC said that it is aware of employees who are members of SISEU, which is its affiliated union.

NTUC and SISEU assured members that assistance will be extended to those affected by the retrenchment exercise.

This includes access to resources to help workers transition to new job opportunities as well as any necessary financial support.

Those affected are encouraged to contact SISEU for assistance via e-mail at 

 or by phone on 6220-3345.

EmploymentMinistry of ManpowerSingaporeRetrenchment