Singapore’s Largest Bank to Cut 4,000 Jobs as AI Takes Over

Singapore’s largest bank, DBS, announced plans to reduce its workforce by approximately 4,000 roles over the next three years as artificial intelligence (AI) increasingly automates tasks currently performed by humans. The decision marks a significant shift in the bank’s operational strategy, positioning DBS as one of the first major financial institutions to outline the tangible impact of AI on employment.

The planned reduction will primarily impact temporary and contract staff, with no immediate effect on permanent employees. According to a DBS spokesperson, the workforce downsizing will occur through “natural attrition” as specific projects reach completion.

“Over the next three years, we envisage that AI could reduce the need to renew about 4,000 temporary/contract staff across our 19 markets working on specific projects,” the spokesperson said. “We expect the reduction in workforce will come from natural attrition as these temporary and contract roles are completed over the next few years.”

Currently, DBS employs between 8,000 and 9,000 temporary and contract workers, contributing to its total workforce of around 41,000 people. The bank, however, did not disclose the specific number of job cuts expected in Singapore.

While the anticipated job cuts may raise concerns, DBS is also looking to the future by creating around 1,000 new AI-related roles. The initiative aims to harness emerging technologies to enhance operational efficiency and drive innovation.

Piyush Gupta, DBS’s outgoing chief executive, emphasized the bank’s longstanding investment in AI technology. “We today deploy over 800 AI models across 350 use cases and expect the measured economic impact of these to exceed US$745 million in 2025,” Gupta noted.

Gupta, who has led the bank’s digital transformation efforts, is set to step down at the end of March. He will be succeeded by Tan Su Shan, the current deputy chief executive, who is expected to continue pushing the bank’s AI-driven strategy forward.

DBS’s move comes amidst broader global discussions about the impact of AI on the job market. The International Monetary Fund (IMF) warned in 2024 that nearly 40% of all jobs worldwide could be affected by AI. Kristalina Georgieva, the IMF’s managing director, stated that “in most scenarios, AI will likely worsen overall inequality.”

The bank’s approach could set a precedent for other financial institutions exploring AI-driven efficiencies, demonstrating how technology can reshape business models while maintaining a commitment to employee stability and growth.