In a bid to streamline its workforce in line with technological advancements, DBS Bank, Singapore’s largest bank, has announced that it expects to cut approximately 4,000 roles over the next three years. This reduction will primarily impact temporary and contract positions, as artificial intelligence (AI) gradually takes on more responsibilities that were previously held by human employees.
DBS Bank to Lay Off 4,000 Roles Amid AI Integration
DBS Bank to Lay Off 4,000 Roles Amid AI Integration
Singapore's DBS Bank plans significant workforce changes as AI technology reshapes its operations.
According to a spokesperson from the bank, these job cuts will occur through "natural attrition" as ongoing projects are finalized. Permanent staff members will not face any job losses due to these changes. Piyush Gupta, the bank's outgoing CEO, indicated that while the roles would be reduced, DBS expects to create around 1,000 new positions focused on AI-related tasks, indicating a shift towards a more technologically advanced workforce.
The cuts represent a significant move for DBS, positioning it among the first major banks to publicly outline the impact of AI on its operational workforce. While specific figures regarding affected staff in Singapore were not disclosed, it has been reported that DBS employs between 8,000 and 9,000 temporary workers, out of a total workforce of approximately 41,000.
The bank has been actively developing AI capabilities for over a decade, currently utilizing more than 800 AI models across 350 different use cases. Gupta projected that the economic benefits derived from these technologies could exceed S$1 billion (around $745 million) by 2025.
The rise of AI technology has sparked discussions about its potential effects on the job market, with the International Monetary Fund (IMF) predicting significant changes by 2024 that could impact nearly 40% of jobs globally. However, differing perspectives exist on the nature of these impacts. Andrew Bailey, the Bank of England’s governor, suggested that while AI poses risks to employment, it also offers substantial opportunities for workers to adapt to new technologies.
As DBS navigates this transition, the balance between embracing technological innovation and mitigating job losses remains a critical issue for the banking sector and beyond.
The cuts represent a significant move for DBS, positioning it among the first major banks to publicly outline the impact of AI on its operational workforce. While specific figures regarding affected staff in Singapore were not disclosed, it has been reported that DBS employs between 8,000 and 9,000 temporary workers, out of a total workforce of approximately 41,000.
The bank has been actively developing AI capabilities for over a decade, currently utilizing more than 800 AI models across 350 different use cases. Gupta projected that the economic benefits derived from these technologies could exceed S$1 billion (around $745 million) by 2025.
The rise of AI technology has sparked discussions about its potential effects on the job market, with the International Monetary Fund (IMF) predicting significant changes by 2024 that could impact nearly 40% of jobs globally. However, differing perspectives exist on the nature of these impacts. Andrew Bailey, the Bank of England’s governor, suggested that while AI poses risks to employment, it also offers substantial opportunities for workers to adapt to new technologies.
As DBS navigates this transition, the balance between embracing technological innovation and mitigating job losses remains a critical issue for the banking sector and beyond.
