DBS says job reductions will come through natural attrition as AI transforms operations
Singapore’s biggest bank, DBS, has announced plans to cut approximately 4,000 jobs over the next three years as artificial intelligence (AI) takes on more tasks traditionally performed by humans. The move positions DBS as one of the first major financial institutions to reveal the direct impact of AI on its workforce.
The job reductions will primarily affect temporary and contract staff, with no immediate impact on permanent employees. According to a bank spokesperson, the downsizing will occur through “natural attrition”, meaning affected roles will not be renewed once specific projects conclude.
“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.
DBS currently employs between 8,000 and 9,000 temporary and contract workers, contributing to its total workforce of approximately 41,000 people. The bank has not specified how many of the job cuts will occur in Singapore.
While the reduction in contract jobs may raise concerns about job security, DBS is simultaneously investing in AI-driven opportunities. The bank plans to create 1,000 new AI-related roles, emphasizing its commitment to technological advancement and workforce adaptation.
Outgoing CEO Piyush Gupta, a key figure in DBS’s digital transformation, highlighted the bank’s extensive use of AI across various functions.
“We today deploy over 800 AI models across 350 use cases and expect the measured economic impact of these to exceed US$745 million in 2025,” Gupta noted.
Gupta is set to step down at the end of March and will be succeeded by Tan Su Shan, the current deputy chief executive, who is expected to continue leading DBS’s AI-driven strategy.
DBS’s decision comes amid growing concerns about AI’s effect on global employment. In a 2024 report, the International Monetary Fund (IMF) warned that nearly 40% of jobs worldwide could be affected by AI, with IMF Managing Director Kristalina Georgieva cautioning that “in most scenarios, AI will likely worsen overall inequality.”
As the financial sector increasingly embraces AI-driven efficiencies, DBS’s approach could serve as a model for other institutions looking to balance technological innovation with workforce stability. The move signals a broader shift in how banks and businesses worldwide are preparing for an AI-powered future.