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Singapore's largest bank, DBS, has announced plans to reduce its workforce by approximately 4,000 roles over the next three years as it increasingly integrates artificial intelligence (AI) into its operations. However, the bank has reassured its permanent staff that they will not be directly affected, with the reduction stemming from the natural attrition of temporary and contract workers.
According to a DBS spokesperson, the cuts will occur as temporary and contract roles "roll off" over the coming years, indicating a strategic approach to workforce management. The bank currently employs between 8,000 and 9,000 temporary and contract workers out of roughly 41,000. While the bank did not specify which roles would be affected or the breakdown of job cuts within Singapore, outgoing CEO Piyush Gupta revealed that DBS plans to create approximately 1,000 new AI-related positions.
Gupta, who is set to depart at the end of March, with current deputy chief executive Tan Su Shan taking over, highlighted DBS's decade-long investment in AI. "We today deploy over 800 AI models across 350 use cases, and expect the measured economic impact of these to exceed S$1bn ($745m; £592m) in 2025," he stated, underscoring the bank's commitment to leveraging AI for efficiency and growth.
However, Mr. Gupta highlighted a significant challenge, stating, '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 I will repurpose people to create jobs.' This statement underscores the unprecedented nature of AI's impact on employment and the difficulty of predicting future job creation in a rapidly evolving technological landscape.
DBS's announcement marks a significant moment as it becomes one of the first major banks to provide concrete details on the impact of AI on its workforce. This move comes amidst a broader global discussion about the implications of AI on employment. The International Monetary Fund (IMF) has warned that AI is poised to affect nearly 40% of all jobs worldwide, with Managing Director Kristalina Georgieva expressing concerns that it could exacerbate inequality. Conversely, Bank of England Governor Andrew Bailey has taken a more optimistic stance, asserting that AI will not be a "mass destroyer of jobs" and that workers will adapt to collaborate with the new technology. Bailey acknowledged the inherent risks of AI but emphasized its "great potential," a sentiment echoed by DBS's commitment to creating new AI-focused roles.
The proactive approach of DBS in managing workforce adjustments through natural attrition aims to mitigate the negative impact on its employees. However, the announcement underscores the growing reality of AI's transformative power and the need for businesses and individuals to adapt to the changing nature of work. The future of banking and many other industries is undeniably intertwined with the rapid advancement of artificial intelligence. DBS's actions are a clear indicator of the ongoing changes that technological advances are bringing to the modern workplace and how large corporations are attempting to navigate those changes.
