DBS Bank expects to reduce its workforce by 4,000 positions over the next three years due to AI advancements, but also plans to create approximately 1,000 new roles linked to AI technology.
Singapore's DBS Bank to Slash 4,000 Jobs Amidst AI Transition
Singapore's DBS Bank to Slash 4,000 Jobs Amidst AI Transition
The largest bank in Singapore, DBS, announces plans to cut 4,000 roles as it increasingly integrates artificial intelligence into its operations.
In a significant move reflecting the growing impact of artificial intelligence (AI) on the workforce, DBS Bank, Singapore's largest financial institution, has indicated that it will reduce its staff by 4,000 jobs over the next three years. This decision comes as the bank integrates AI into its operations, taking over tasks traditionally performed by human employees. A spokesperson from DBS confirmed to the BBC that the workforce reduction will largely occur through natural attrition, as temporary and contract positions phase out over time, with no immediate impact on permanent staff.
DBS currently employs around 41,000 people, with 8,000 to 9,000 of those in temporary or contract roles. The bank's outgoing CEO, Piyush Gupta, highlighted that despite the reduction, the organization anticipates creating approximately 1,000 new roles focused on AI. Gupta noted that DBS has been developing AI applications for over a decade, deploying more than 800 models across 350 use cases, with projections estimating an economic impact of over S$1 billion (approximately $745 million) by 2025.
As AI technology becomes more woven into the fabric of banking and finance, the implications for employment are becoming increasingly relevant. The International Monetary Fund (IMF) forecasted that by 2024, AI could influence nearly 40% of jobs globally, with concerns raised about its potential to exacerbate social inequalities. However, some industry leaders, including the governor of the Bank of England, Andrew Bailey, argue that while AI presents certain risks, it has the capacity to enhance overall productivity and create new job opportunities, fostering a collaborative future between technology and human labor.
As DBS Bank prepares for a leadership transition, with Tan Su Shan set to take over from Gupta at the end of March, the bank is positioned as a key player in the evolving dialogue around AI’s transformative impact on the workforce and the quality of jobs in the financial sector.
DBS currently employs around 41,000 people, with 8,000 to 9,000 of those in temporary or contract roles. The bank's outgoing CEO, Piyush Gupta, highlighted that despite the reduction, the organization anticipates creating approximately 1,000 new roles focused on AI. Gupta noted that DBS has been developing AI applications for over a decade, deploying more than 800 models across 350 use cases, with projections estimating an economic impact of over S$1 billion (approximately $745 million) by 2025.
As AI technology becomes more woven into the fabric of banking and finance, the implications for employment are becoming increasingly relevant. The International Monetary Fund (IMF) forecasted that by 2024, AI could influence nearly 40% of jobs globally, with concerns raised about its potential to exacerbate social inequalities. However, some industry leaders, including the governor of the Bank of England, Andrew Bailey, argue that while AI presents certain risks, it has the capacity to enhance overall productivity and create new job opportunities, fostering a collaborative future between technology and human labor.
As DBS Bank prepares for a leadership transition, with Tan Su Shan set to take over from Gupta at the end of March, the bank is positioned as a key player in the evolving dialogue around AI’s transformative impact on the workforce and the quality of jobs in the financial sector.
