Singapore’s largest bank, DBS, has announced plans to reduce its workforce by 4,000 over the next three years as artificial intelligence (AI) increasingly takes over roles previously handled by human employees.
The move highlights the growing influence of automation in the financial sector and raises concerns about the future of traditional banking jobs.
According to a spokesperson for DBS, the job cuts will primarily come from natural attrition as temporary and contract roles phase out over time.
However, the bank clarified that permanent staff would not be affected.
In contrast, DBS plans to create around 1,000 new AI-related positions, underscoring the shift towards digital transformation in the banking industry.
DBS, which employs around 41,000 people, did not disclose how many of the affected jobs are based in Singapore or specify the exact roles to be eliminated.
The bank currently has between 8,000 and 9,000 temporary and contract workers, meaning the impact could be significant.
Outgoing CEO Piyush Gupta, who is set to leave at the end of March, revealed that the bank has been investing in AI for over a decade, deploying more than 800 AI models across 350 use cases.
He projected that AI-driven efficiencies could contribute over S$1 billion ($745 million) to the bank’s economic impact by 2025.
The announcement comes amid global concerns over AI’s role in reshaping the job market.
The International Monetary Fund recently warned that nearly 40% of jobs worldwide could be affected by AI, potentially worsening income inequality.
However, some financial leaders, including the Bank of England’s governor, Andrew Bailey, have argued that AI will complement human workers rather than replace them entirely.
