Singapore’s largest bank, DBS, has announced plans to reduce its workforce by 4,000 over the next three years as artificial intelligence (AI) takes on more responsibilities previously handled by humans.
How Will the Job Cuts Happen?
According to DBS, the reduction will come from natural attrition, meaning temporary and contract positions will gradually be phased out. Importantly, permanent employees will not be affected by these changes.
A spokesperson for the bank told the BBC, “The reduction in workforce will come from natural attrition as temporary and contract roles roll off over the next few years.”
New AI-Related Jobs on the Horizon
While some roles are being eliminated, DBS is also creating around 1,000 new jobs focused on AI and related technologies. This move makes DBS one of the first major banks to provide clear details on how AI will shape its workforce in the coming years.
How Many People Work at DBS?
DBS currently employs around 41,000 people worldwide, with 8,000 to 9,000 of them being temporary or contract workers. The company has not specified how many of the affected roles are based in Singapore or which specific job types will be impacted.
DBS and AI: A Long-Standing Relationship
DBS has been investing in AI for over a decade. Outgoing CEO Piyush Gupta, who is set to step down at the end of March, shared that the bank currently uses more than 800 AI models across 350 different areas of its operations. These AI-driven efficiencies are expected to generate over S$1 billion (US$745 million) in economic benefits by 2025.
Following Gupta’s departure, current deputy CEO Tan Su Shan will take over as the new CEO of DBS.
AI’s Growing Influence on Global Jobs
The rise of AI is transforming industries worldwide. A 2024 report from the International Monetary Fund (IMF) estimated that AI could impact nearly 40% of all jobs globally.
IMF Managing Director Kristalina Georgieva has warned that AI could widen economic inequality, as some roles become obsolete while others require new skills.
Meanwhile, Andrew Bailey, the governor of the Bank of England, has expressed a more balanced perspective.
In an interview with the BBC, he stated that AI won’t be a “mass destroyer of jobs”, emphasizing that human workers will adapt and learn to work alongside new technologies.
Final Thoughts
DBS’s decision reflects a broader trend in the financial sector and beyond, AI is rapidly transforming the way businesses operate. While some jobs are disappearing, new opportunities in AI-driven roles are emerging.
The challenge now lies in equipping workers with the right skills to thrive in this evolving landscape.
For more on AI’s impact on the global workforce, check out this report from the World Economic Forum.
