DBS may cut 4,000 temp jobs over next 3 years as AI takes over, with reductions to come from ‘natural attrition’

SINGAPORE: DBS Group may cut 4,000 contract and temporary jobs over the next 3 years as artificial intelligence (AI) takes over tasks carried out by humans, outgoing CEO Piyush Gupta said on Monday, Feb 24.

Speaking at an industry conference in Mumbai, he said, “My current projection in the next 3 years, we’ll shrink our workforce by about 4,000 or 10%,” adding that 1,000 new positions will be added in AI, Reuters reported.

He added that this is the first time in his 15 years as CEO that he’s “struggling to create jobs,” explaining, “So far, I’ve always had a line of sight to what jobs I can create. This time, I’m struggling to say how will I repurpose people to create jobs.”

According to Bloomberg, the largest lender in Southeast Asia currently employs around 8,000 to 9,000 contract staff, as per Mr Gupta. He confirmed a report from Press Trust of India that said the cuts would happen as AI becomes more embedded in the bank’s operations.

Meanwhile, permanent employees would not be affected by the changes.

Singapore-based DBS has around 41,000 staff in total. Mr Gupta will be replaced by Tan Su Shan, the current deputy CEO, on Mar 28.

A report from Bloomberg Intelligence last month predicted that global banks could cut up to 200,000 jobs over the next 3 to 5 years due to the rise of AI. The report, which surveyed chief information and technology officers, found that banks are expected to reduce their workforce by an average of 3%.

Even so, many firms noted that the rise of AI will merely change roles, not replace people entirely. In November, Teresa Heitsenrether, who leads AI efforts at JPMorgan Chase, said the bank’s use of generative AI has so far improved jobs.

Reuters reported that a DBS spokesperson said in an emailed response that the workforce reduction will come from “natural attrition” as temporary and contract roles roll off over the next few years.

Earlier this month, DBS Group announced a S$1,000 bonus for all its staff, excluding senior managers, following a 10 per cent rise in its fourth-quarter net profit. The bank set aside S$32 million for the bonus to recognise employees’ contributions. /TISG

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