Singapore’s largest bank, DBS, has announced plans to cut 4,000 roles over the next three years as artificial intelligence (AI) increasingly automates tasks previously performed by humans. This move highlights the growing influence of AI in reshaping the global workforce and financial sector.
DBS confirmed that the job reductions would be achieved through natural attrition, primarily affecting temporary and contract workers. The bank currently employs between 8,000 and 9,000 temporary staff out of its total workforce of approximately 41,000 employees. Permanent staff are not expected to be impacted by these changes.
A spokesperson for DBS told the BBC that the workforce reduction would occur gradually as contracts expire and temporary positions phase out. However, as AI transforms operations, the bank also plans to create around 1,000 new AI-related roles, emphasizing the shift toward a more technologically advanced workforce.
DBS has been integrating AI into its operations for over a decade. Outgoing CEO Piyush Gupta revealed that the bank currently utilizes more than 800 AI models across 350 use cases. The economic impact of these AI deployments is projected to exceed S$1 billion ($745 million) by 2025.
With Gupta set to leave the company at the end of March, Tan Su Shan, the bank’s current deputy chief executive, will take over as CEO. She is expected to oversee DBS’s continued digital transformation, which is likely to further integrate AI and automation into banking services.
The DBS announcement aligns with global concerns about AI’s effect on employment. According to the International Monetary Fund (IMF), AI could impact nearly 40% of all jobs worldwide. IMF Managing Director Kristalina Georgieva has warned that AI is likely to exacerbate income inequality, as higher-skilled workers benefit while lower-skilled jobs face automation risks.
Conversely, some experts maintain that AI will not be a “mass destroyer of jobs.” Bank of England Governor Andrew Bailey has expressed optimism, suggesting that workers will adapt and learn to collaborate with AI technologies rather than be replaced entirely.
DBS is among the first major financial institutions to disclose specific AI-related job impacts, setting a precedent for how banks globally might navigate workforce transformations. As AI continues to revolutionize banking, firms must strike a balance between innovation and workforce sustainability, ensuring that employees transition into new roles created by technological advancements.
