DBS Bank, Singapore’s largest bank, plans to cut around 4,000 positions over three years due to increased AI adoption, impacting mainly temporary and contract staff. Permanent employees will remain unaffected, as the reductions will occur through natural attrition associated with project completions. DBS anticipates creating 1,000 new jobs related to AI and currently employs around 41,000 individuals, including 8,000 to 9,000 temporary workers. Outgoing CEO Piyush Gupta highlighted the bank’s investment in AI technologies, projecting a significant economic impact by 2025. The rise of AI raises concerns about job displacement, with the IMF forecasting potential global job effects.
DBS, Singapore’s largest financial institution, has revealed its intention to cut approximately 4,000 positions over the next three years. This decision is driven by the growing integration of artificial intelligence (AI) technologies, which are expected to take on tasks currently performed by human workers.
The positions affected will mainly include temporary and contract workers, with the workforce decrease anticipated to occur through natural attrition as various projects are concluded. Importantly, full-time employees will not be subject to these reductions.
As per the outgoing CEO of DBS, Piyush Gupta, the bank is looking to generate roughly 1,000 new jobs related to AI initiatives. This announcement positions DBS among the first major banks to shed light on how AI will influence its operations. However, the bank has not specified how many job losses will occur specifically in Singapore.
A representative from DBS further explained the workforce reduction, stating, “Over the next three years, we foresee that AI could diminish the necessity to renew around 4,000 temporary/contract staff across our 19 markets engaged in particular projects.” The spokesperson added, “Consequently, we believe the workforce reduction will emerge through natural attrition as these temporary and contract positions conclude in the coming years.”
Currently, DBS has between 8,000 and 9,000 temporary and contract employees in addition to a total workforce of about 41,000 individuals. Last year, Gupta disclosed that DBS has been investing in AI technologies for over a decade. He stated, “We currently utilize over 800 AI models across 350 use cases, and anticipate that the measured economic impact of these will surpass S$1bn ($745m; £592m) in 2025.”
As Gupta prepares to depart from the company at the end of March, the current Deputy CEO, Tan Su Shan, is poised to take over. The growing adoption of AI technology has ignited substantial discussion regarding its advantages and challenges. The International Monetary Fund (IMF) has indicated that AI is likely to impact nearly 40% of jobs globally. IMF Managing Director Kristalina Georgieva warned that “in most scenarios, AI will likely worsen overall inequality.”