DBS to cut 4,000 contract and temporary staff over three years as AI adoption grows

DBS Group Holdings expects to reduce its contract and temporary workforce by about 4,000 over the next three years, as artificial intelligence (AI) increasingly takes over tasks currently handled by humans, CEO Piyush Gupta confirmed. A DBS spokesperson told The Straits Times that the job cuts will occur through natural attrition as temporary and contract positions end, but did not specify how many workers in Singapore would be affected or which roles would be impacted. Gupta confirmed the plans after a report by the Press Trust of India stated that the bank would reduce its workforce as AI becomes more integrated across its business operations. He noted that DBS currently employs 8,000 to 9,000 contract and temporary staff, and reiterated that permanent employees will not be affected. DBS, headquartered in Singapore, has a total workforce of about 41,000. Gupta is set to step down as CEO in March 2025 after leading the bank since 2009. He will be succeeded by Tan Su Shan, the bank’s group head of institutional banking, who was recently appointed deputy CEO. The move comes as financial institutions worldwide ramp up their use of AI. A January report by Bloomberg Intelligence projected that global banks could cut as many as 200,000 jobs over the next three to five years as AI takes over certain roles. Chief information and technology officers surveyed for the report estimated that an average of 3% of their workforce could be reduced due to AI adoption. However, many companies have stressed that AI will reshape roles rather than eliminate them entirely. JPMorgan Chase’s AI head, Teresa Heitsenrether, said in November 2024 that generative AI was augmenting jobs rather than replacing them. DBS’ job reductions come as the bank also adjusts executive pay following a series of digital disruptions in 2023. The bank said in its annual report last March that Gupta, who was paid S$11.2 million in 2023, saw his total remuneration drop by 27% from S$15.4 million in 2022. It stated that the decline was due to the service disruptions that occurred under his leadership, for which senior management was held accountable.