In today’s competitive landscape, a company’s treatment of its employees, particularly during layoffs or retrenchments, has a profound impact on its brand image and public perception. Something that travel company Agoda now knows very well after it came under fire following confirmation that it had laid off 50 employees in its Singapore office, part of a broader restructuring that also created new roles in other locations.

In the midst of this news, reports began to surface indicating that severance agreements included clauses preventing employees from making claims or approaching mediators regarding their termination, with violations resulting in the loss of severance benefits.

Singapore’s Ministry of Manpower (MOM) is currently investigating this and expressed its concern, stating that such clauses undermine trust in the employment framework and are contrary to fair employment practices. The National Trades Union Congress (NTUC) and the Singapore Industrial and Services Employees’ Union (SISEU) have also voiced strong opposition to Agoda’s alleged practices, which they deem unfair and irresponsible.

On a public reputation level, reactions were strong, with the majority of netizens expressing disappointment with Agoda and criticising the company for its severance clause. They deemed it unlawful, intimidating, and reflective of an unethical workplace culture. Some perceived the clause as suspicious, speculating that it may be hiding information from the authorities, according to media intelligence firm Truescope. 

Before the incident, engagement on Agoda was driven by travel promotions, partnerships, and marketing initiatives. This incident, however, also became a lightning rod for netizens to express negative reviews and experiences with Agoda, causing a near-complete sentiment reversal in the Singapore market over the last 24 hours, said Truescope. 

This was despite the fact that Agoda released a statement following the news stating that affected employees were given “every support” through this process and that they were free to seek alternative legal options or to speak with local authorities. 

Truescope added that the narrative evolution chart above illustrates how the story developed throughout the day on September 17 when the news broke.

Initial factual reports dominated the early morning, but by mid-morning, public backlash began gaining momentum. Union responses and regulatory investigation narratives became prominent by early afternoon, while Agoda’s denial of the clause entered the conversation later in the day but never achieved the same prominence as the critical narratives, essentially having no desired impact. 

The Impact of Employment Practices on Brand Image
According to communications professionals, PRovoke Media spoke to, the way a company treats its employees, especially during sensitive moments such as layoffs, is no longer an internal matter. It is a public signal of its values.

“Employees are the most credible ambassadors of any brand, and how they are respected, informed, and supported during difficult transitions directly shapes external perception,” said Priyanka Bajpai, founder of Roots Consultancy.

She added that stakeholders, from customers to investors, all view employment practices as a proxy for corporate integrity. “Mishandled layoffs can erode trust far beyond the workforce, while empathetic and transparent practices can strengthen brand loyalty even in tough times. It takes years and consistent effort to build trust and reputation, but only minutes to lose it,” she said. 

Bajpai went on to advise that companies should first prioritise employees, not messaging. Clarity, consistency, and empathy are critical. This means communicating directly and honestly with those impacted before any external statements are made, explaining the business context clearly, while avoiding corporate jargon and offering tangible support such as transition assistance, redeployment opportunities, or career counselling.

Externally, the tone should balance accountability with humanity. Stakeholders understand economic realities, but they expect fairness, responsibility, and leadership that demonstrates care.

“In my previous leadership roles, I have advised on sensitive workforce changes across Asia. I have always advised companies and leaders to focus on authenticity and compassion,” added Bajpai. “One key lesson was that speed without empathy magnifies backlash. Where companies rushed to announce restructuring, the lack of preparation and inconsistent narratives fuelled mistrust internally and externally. Worse still, practices that appear to disregard employee rights are deeply damaging – not just to individuals, but to long-term brand credibility.”

“Conversely, when we invested time in aligning leadership, preparing managers to cascade messages, and sequencing communications thoughtfully, the process, while never easy, was perceived as more respectful and credible. Having been on both sides of the table, I believe the lesson for Agoda and others is this: in moments of change, how you communicate is just as important as what you communicate,” she said. 

Adding to her point, Meilin Wong, APAC CEO of Milk and Honey PR said that she once worked with a company that had to shut down a regional office. “The majority of the leadership initially wanted a concise corporate note. I advised the CEO to record a heartfelt video message to all staff to explain the situation, the decision we had to take, thank them, and outline concrete next steps to support those affected. No corporate jargon, and it wasn’t scripted, but it felt real,” she said, adding that people appreciated that the CEO took responsibility directly.

“Tone matters as much as content. Silence or hiding behind legal terms would have made the bad situation worse. For Agoda, that means moving away from defensiveness and showing they’ve listened. Hiding behind legal clauses or silence only fuels distrust. Acknowledging missteps, apologising sincerely and outlining corrective action would go a long way now,” she advised.

Wong explained that she has always believed that a company’s real values show up in the hardest moments, not the easiest ones. Layoffs are one of those moments. “The way you treat people as they leave says far more about your culture than any employer branding campaign ever will. If people who leave feeling respected and supported, they may still speak of you with some pride. But if they feel discarded or silenced, that story will travel further and faster than any corporate messaging. And in today’s hyper-connected world, that kind of damage can be hard to repair.”

At the end of the day, one must remember that we are living in a world where everything a brand does matters deeply. 

“Today’s conscious consumers see beyond marketing to the core of a company, judging a brand not only by the delivery of its promises to customers, but in its conduct towards employees and stakeholders. In the court of public opinion, an employer living by its company’s values is its most critical testimony,” said Emily Poon, a seasoned communications professional. 

She added that how you let people leave determines whether they become lifelong detractors or advocates, and whether bridges are burned or remain open for a return.