DBS to Cut 4,000 Jobs as AI Takes Over Roles in Southeast Asia’s Largest Bank

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Singapore – DBS, the largest bank in Singapore, has announced plans to cut approximately 4,000 jobs over the next three years as it increases the adoption of artificial intelligence (AI) technologies. The move signals a significant shift in the banking sector, where automation and AI are set to take over tasks previously handled by human employees.

The affected positions will mainly comprise temporary and contract staff, with job reductions occurring through natural attrition as projects conclude. Importantly, the bank has assured that permanent staff will not be impacted by these workforce cuts.

DBS’s outgoing CEO, Piyush Gupta, revealed that the bank expects to create about 1,000 new jobs related to AI. This makes DBS one of the first major banks to provide insights into the direct effects of AI implementation on its workforce. However, the bank has not specified how many of the 4,000 eliminated positions will come from its Singapore operations.

“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 stated. “As such, we expect the reduction in workforce will come from natural attrition as these temporary and contract roles are completed over the next few years.”

DBS currently employs between 8,000 and 9,000 temporary and contract workers, in addition to its total workforce of approximately 41,000 employees.

Gupta, who is set to leave his position at the end of March, has overseen DBS’s AI investments 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. Deputy CEO Tan Su Shan is set to take over leadership after Gupta’s departure.

The increasing integration of AI in various industries has raised concerns about job displacement. The International Monetary Fund (IMF) has warned that AI could impact nearly 40% of all jobs worldwide, with IMF Managing Director Kristalina Georgieva cautioning that AI could “exacerbate overall inequality.”

Sources By Agencies