Singapore’s largest bank, DBS, anticipates eliminating approximately 4,000 roles within the next three years due to artificial intelligence (AI) increasingly handling tasks currently performed by humans, according to a report by the BBC.
A spokesperson for the bank clarified that the job reductions would primarily affect temporary and contract workers, with the decrease in workforce occurring through “natural attrition” as specific projects reach completion.
The layoffs will not impact permanent employees. Piyush Gupta, the outgoing chief executive of DBS, also stated that the bank plans to generate around 1,000 new jobs related to AI.
With this announcement, DBS becomes one of the first major financial institutions to provide concrete details on how AI implementation will reshape its workforce.
The bank has not specified the number of jobs that will be lost in Singapore.
“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,” the spokesperson said.
“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.”
Currently, DBS employs between 8,000 and 9,000 temporary and contract workers, while its total workforce stands at approximately 41,000 employees.
Last year, Gupta highlighted that DBS had been engaged in AI development for over ten years.
“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 stated.
Gupta is scheduled to leave his position at the end of March, with current deputy chief executive Tan Su Shan set to succeed him.
The rapid advancement of AI technology has sparked debates regarding its advantages and potential drawbacks. In 2024, the International Monetary Fund (IMF) reported that AI is expected to impact nearly 40% of jobs worldwide.
Kristalina Georgieva, the IMF’s managing director, remarked that “in most scenarios, AI will likely worsen overall inequality.”
Meanwhile, Bank of England Governor Andrew Bailey told the BBC last year that AI would not be a “mass destroyer of jobs” and that human workers would adapt to new technological changes.
Bailey acknowledged the risks associated with AI but also emphasized its “great potential.”