Singapore’s largest bank, DBS, has announced plans to cut 4,000 temporary and contract roles over the next three years as artificial intelligence (AI) takes over tasks previously performed by human employees.
The bank’s outgoing Chief Executive Officer, Piyush Gupta, made the revelation during a recent statement on Monday.
The job reductions will not affect permanent staff, according to a DBS spokesperson, who clarified that the workforce reduction will occur through natural attrition as specific projects conclude. “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 stated in an email to Reuters on Tuesday.
Why the Job Cuts Are Happening
DBS employs approximately 41,000 people, including 8,000 to 9,000 temporary and contract staff, and has been investing heavily in AI technology. The bank currently utilizes over 800 AI models across 350 use cases, with the measured economic impact of these technologies projected to exceed S$1 billion ($745 million; £592 million) by 2025.
Piyush Gupta, who is set to step down as CEO on March 28, 2025, and will be replaced by Tan Su Shan, admitted that the rise of AI is making it challenging to create new job opportunities. “In my 15 years of being a CEO, for the first time, I’m struggling to create jobs. So far, I’ve always had a line of sight to what jobs I can create. This time I’m struggling to say how will I repurpose people to create jobs,” Gupta said.
Despite the workforce reductions, DBS plans to create 1,000 new AI-related jobs, signaling a shift toward more technology-driven roles within the bank.
Global Reactions to AI Job Disruptions
The increasing adoption of AI in the banking and financial sector has sparked global discussions on its impact on employment. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), has previously warned that AI will affect nearly 40% of all jobs worldwide and will likely worsen economic inequality.
Meanwhile, Andrew Bailey, Governor of the Bank of England, has taken a more optimistic stance, stating that AI will not be a “mass destroyer of jobs” and that workers will adapt to technological advancements. “There is great potential with it,” Bailey told the BBC last year, acknowledging the risks while emphasizing the opportunities AI presents.
DBS Among First Major Banks to Reveal AI Job Impact
With this announcement, DBS becomes one of the first major banks to provide specific details on how AI will impact its workforce.
The company has not disclosed how many of the 4,000 job reductions will occur in its home base of Singapore but confirmed that temporary and contract staff across its 19 markets will be affected.
