Singapore’s largest bank, DBS, has announced plans to reduce approximately 4,000 roles over the next three years as artificial intelligence (AI) takes on more tasks currently handled by humans.
According to a bank spokesperson, the job cuts will primarily affect temporary and contract workers, with the reduction occurring through “natural attrition” as projects conclude.
Permanent employees will not be impacted.
Outgoing Chief Executive Piyush Gupta stated that while AI would replace some roles, the bank also expects to create around 1,000 new AI-related jobs.
“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,” a DBS spokesperson said.
DBS, which employs between 8,000 and 9,000 temporary and contract workers, has not disclosed how many of the cuts will take place in Singapore.
In total, the bank has a workforce of approximately 41,000 employees.
Mr. Gupta noted that DBS has been integrating AI into its operations for over a decade.
“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 said.
Leadership at the bank is also set for a transition, with Deputy Chief Executive Tan Su Shan replacing Mr. Gupta when he steps down at the end of March.
The broader impact of AI on jobs remains a key global concern. The International Monetary Fund (IMF) warned in 2024 that nearly 40% of jobs worldwide could be affected by AI.
IMF Managing Director Kristalina Georgieva cautioned that “in most scenarios, AI will likely worsen overall inequality.”
However, Bank of England Governor Andrew Bailey offered a more optimistic outlook, stating that AI would not be a “mass destroyer of jobs” and that human workers would adapt to new technologies.
While acknowledging the risks, Mr. Bailey also emphasized that AI presents “great potential.”
Source-BBC
