Singapore’s largest bank, DBS, has announced plans to reduce approximately 4,000 temporary and contract roles over the next three years as artificial intelligence (AI) takes on more tasks currently handled by human workers.
The job reductions will occur through natural attrition as various projects are completed, a bank spokesperson confirmed. However, permanent employees will not be affected by the move.
The bank’s outgoing CEO, Piyush Gupta, also revealed that DBS expects to create around 1,000 new positions related to AI, making it one of the first major financial institutions to outline how AI will reshape its workforce.
Currently, DBS employs between 8,000 and 9,000 temporary and contract workers, while its total workforce stands at around 41,000.
According to Gupta, the bank has been investing in AI for more than a decade and has already integrated over 800 AI models across 350 use cases.
These AI-driven initiatives are projected to generate an economic impact exceeding S$1 billion (approximately $745 million) by 2025.
Leadership at DBS is also set for a transition, with Gupta stepping down at the end of March.
His successor, Deputy CEO Tan Su Shan, will take over the reins.
The growing adoption of AI across industries has sparked global discussions about its impact on employment. The International Monetary Fund (IMF) estimates that AI could influence nearly 40% of jobs worldwide, with its managing director Kristalina Georgieva cautioning that AI is likely to exacerbate economic inequality.
Meanwhile, Bank of England Governor Andrew Bailey has expressed a more balanced outlook, suggesting that while AI presents certain risks, it also offers significant opportunities and is unlikely to lead to widespread job losses.
As DBS advances its AI-driven transformation, the bank’s restructuring highlights the evolving nature of work in the financial sector, where automation and human expertise will increasingly coexist.
