Singapore's biggest bank DBS to cut 4,000 roles as it embraces AI

DBS, Singapore's largest bank, has announced that it anticipates cutting approximately 4,000 jobs over the next three years as artificial intelligence (AI) takes over more tasks currently performed by human labor. This strategic shift aims to streamline operations and enhance efficiency by leveraging AI technologies.

A bank spokesperson stated that the adjustments will affect temporary and contract staff, with the reduction in headcount resulting from "natural attrition" after project completion. Concurrently, permanent employees will not be impacted by these layoffs. Outgoing CEO Piyush Gupta also indicated that approximately 1,000 new AI-related jobs are expected to be created. These new roles will focus on developing, implementing, and maintaining AI solutions.

This makes DBS one of the first major banks to detail how AI will impact its operations. The company did not disclose how many positions will be cut in Singapore. A DBS spokesperson said: “Over the next three years, we anticipate that AI could reduce the need to backfill around 4,000 roles out of a pool of temporary/contract staff of about 8,000-9,000 across the group in our 19 markets as specific projects come to an end. As a result, we expect the number of staff to be reduced through natural attrition as these temporary and contract roles come to completion in the coming years.” DBS currently has 8,000 to 9,000 temporary and contract workers, with a total workforce of approximately 41,000.

Mr. Gupta stated last year that DBS has been working in the field of AI for over a decade. "Today, we have deployed over 800 AI models in 350 use cases and expect these to deliver a measurable economic impact exceeding S$1 billion (US$745 million; £592 million) in 2025." Mr. Gupta will step down at the end of March, and current Deputy CEO Tan Su Shan will succeed him. The transition marks a new chapter for DBS in its AI-driven transformation.

The continued proliferation of AI technology has brought its benefits and risks into sharp focus. The International Monetary Fund (IMF) stated in 2024 that AI will impact nearly 40% of jobs globally. IMF Managing Director Kristalina Georgieva stated that "In most scenarios, AI is likely to worsen overall inequality." Bank of England Governor Andrew Bailey told the BBC last year that AI would not be a "massive job destroyer" and that human employees would learn to work collaboratively with the new technology. Mr. Bailey stated that while there are risks associated with AI, "it has enormous potential."