DBS Bank To Replace 4,000 Jobs With AI Over 3 Years
A recent Bloomberg Intelligence report estimated that banks worldwide could cut up to 200,000 jobs in the next three to five years due to AI advancements.
DBS Group, Southeast Asia's largest bank, has announced plans to cut 4,000 jobs and replace them with artificial intelligence (AI)
The bank clarified that permanent employees will not be affected, as the cuts — affecting contract jobs — will occur gradually over the next three years through natural attrition rather than direct layoffs.
"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," a spokesperson told AFP.
Meanwhile, its chief executive officer (CEO) Piyush Gupta told Reuters that the Singaporean bank plans to create 1,000 new AI-related positions as it reshapes its workforce.
"In my 15 years of being a CEO, for the first time, I'm struggling to create jobs. 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," the outgoing CEO added. He is being succeeded by Tan Su Shan on 28 March.
Gupta highlighted AI's growing role in the bank's operations, revealing that DBS has deployed over 800 AI models across 350 use cases
These AI-driven initiatives are expected to generate more than SGD1 billion (approximately RM3.5 billion) in measured economic impact by 2025, the CEO detailed in a press release last year.
To prepare employees for the transition, DBS has identified 13,000 staff members for AI and data skills training, ensuring they can adapt to the evolving industry landscape.
The shift towards AI is part of a broader trend in the banking sector, where automation is increasingly used to reduce operational costs. A recent Bloomberg Intelligence report estimated that banks worldwide could cut up to 200,000 jobs in the next three to five years due to AI advancements.
Meanwhile, the International Monetary Fund (IMF) warned that AI could impact nearly 40% of jobs globally, with some roles being replaced while others are transformed.
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