Agoda axes customer support roles, workers decry severance terms

"We have phased out customer support roles in our offices in Budapest, Shanghai, and Singapore while creating new positions in other geographic locations," an Agoda spokesperson said. "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."

An employee from one of the retrenched departments, who wished to remain anonymous, told CNA that the layoffs were held 'unannounced' during a closed town hall on August 4 and primarily impacted customer experience departments. The roles affected, which range from customer specialists to regional managers, were part of Agoda's multilingual support teams that resolved customer queries.

While the exact number of employees affected remains unclear, multiple sources suggest that at least 50 positions were cut from Agoda's Singapore office. 

The company is also facing scrutiny over an alleged severance agreement shown to Singapore media, which instructed affected employees not to file reports with government agencies, trade unions, or regulatory bodies. It also prohibited them from initiating mediation requests, claims, or other legal proceedings against the company related to their employment or termination. 

According to the document, employees who breach these terms will have their severance revoked, and any payments received will have to be returned to Agoda 'in full.'

In response, Agoda said it 'continues to follow relevant local laws' and is committed to maintaining a strong local presence in Singapore. "Impacted employees were given every support throughout the transition process in line with industry standards," the Agoda spokesperson said. "During this time, employees were free to seek alternative legal options or engage with local authorities if they so wished."

A CNA report also disclosed that Agoda purportedly told staff in multiple town halls that they were hired "mainly to satisfy the local workforce quota" and allow the company to hire more foreigners in Singapore. Under Singaporean law, companies can only obtain a limited number of work visas for foreign employees based on the number of local employees it hired within at least three months.

An affected employee told CNA they were 'disappointed' with Agoda's decision and that the clauses in the service agreement were intended to keep them quiet 'to avoid causing further bad PR'. 

Singapore's Ministry of Manpower (MOM) has stated it will investigate the alleged severance agreement and is taking the case seriously. "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," the ministry said in a statement.