DBS plans to reduce its temporary and contract workforce by about 4,000 over the next three years, according to CEO Piyush Gupta.
The Singapore-based bank currently employs between 8,000 and 9,000 individuals in such roles.
The workforce reduction, Piyush emphasised, will be gradual and occur through natural attrition as contracts expire, rather than through layoffs. Permanent staff will not be impacted, he added.
Piyush acknowledged the challenges of job creation in an era increasingly shaped by artificial intelligence (AI), saying it is the first time in his 15-year tenure that he has struggled to identify new roles.
AI’s rapid integration into banking operations, he noted, is making it difficult to repurpose employees as tasks traditionally performed by humans become automated.
Gupta described AI’s effect on employment as unprecedented, highlighting both challenges and opportunities.
He is set to step down as CEO on 28 March and will be succeeded by Tan Su Shan who will be the first female CEO in the bank’s history.
While some positions will become redundant, Bloomberg reports that DBS intends to create about 1,000 new roles focused on AI-related initiatives, underscoring the bank’s strategic shift toward digital transformation.
His remarks position him among the first banking executives to openly discuss job reductions linked to AI adoption.
A recent Bloomberg Intelligence report projects that the banking industry globally may see as many as 200,000 job cuts in the next three to five years as AI continues to reshape the sector.
Surveys of chief information and technology officers suggest a projected net workforce reduction of about 3% due to automation.
Despite concerns over job losses, some financial institutions maintain that AI will enhance, rather than eliminate, employment opportunities.
DBS’ latest financial results showed an 11% year-on-year rise in net profit for the fourth quarter, reaching S$2.52 billion. However, this fell slightly short of analyst expectations.
Featured image credit: Edited from Freepik
