Agoda Cuts 50 Jobs Amid Global Restructuring

In a striking move that’s sent ripples through the online travel industry, Agoda has laid off 50 employees in Singapore as part of a sweeping retrenchment strategy. This decision, reported by The Business Times on September 17, reflects a troubling trend for workers at the company.

Virtual Announcement and the Affected Roles

During a virtual town hall meeting held on August 4, Agoda management revealed that the cuts would impact customer experience group (CEG) employees not only in Singapore but also in Shanghai and Budapest. Key roles that have been eliminated include customer service specialists and regional managers, highlighting a significant shift in the company’s operational focus.

The Reasons Behind the Layoffs

Agoda's leadership cited pressing 'cost' issues and ongoing 'recruitment challenges' as major factors behind this major decision. As the travel sector grapples with post-pandemic recovery hurdles, many companies like Agoda are making painful adjustments to stay afloat.

Controversial Severance Terms

According to documents seen by BT, Agoda has implemented stringent conditions around severance packages. Affected employees have been instructed to refrain from reporting their layoffs to government agencies or trade unions like the Ministry of Manpower (MOM) and the Tripartite Alliance for Fair and Progressive Employment Practices (Tafep). Those who choose to speak out risk losing their severance benefits.

A Cautionary Note

Furthermore, the severance agreement includes clauses requiring employees who lodge complaints against Agoda to indemnify the company for resulting costs, including legal fees. Such measures have raised eyebrows and added to the tension surrounding the layoffs.

Agoda's Hiring Continues Despite Cuts

Interestingly, a recent check on Agoda’s careers page reveals that the company continues to recruit for customer experience positions in other regions, such as Japan, South Korea, and Bangkok. This suggests that while Singapore is experiencing significant job cuts, Agoda remains focused on growth in other international markets.

Inquiries Awaited from Authorities

The situation has prompted inquiries from various stakeholders, including local government bodies and trade unions, with many awaiting comments from Agoda, MOM, Tafep, and the National Trade Union Congress (NTUC) regarding the layoffs. As the travel landscape evolves, the implications of such corporate decisions will be closely monitored.