Major Asian Bank Seeks to Reduce 4,000 Positions with AI Automation

According to Getty Images Singapore’s largest bank, DBS, the institution anticipates cutting approximately 4,000 positions over the next three years as artificial intelligence (AI) assumes an increasing amount of work traditionally performed by humans. The layoffs will primarily impact temporary and contract workers; however, permanent staff members are not subject to these reductions.

The bank’s outgoing CEO, Piyush Gupta, also disclosed plans to create around 1,000 new AI-related jobs within the organization. This makes DBS one of the first major banks to publicly outline how AI will influence its operations.

DBS currently employs between 8,000 and 9,000 temporary and contract workers out of a total workforce of around 41,000 people. A spokesperson from the bank clarified that the reduction in staff numbers would result from natural attrition as projects are concluded rather than through active layoffs.

Mr Gupta revealed that DBS had been developing AI for over a decade and currently deploys more than 800 AI models across 350 use cases. The bank anticipates the economic impact of these initiatives to surpass S$1 billion ($745 million; £592 million) by 2025.

Piyush Gupta is scheduled to depart from his role at the end of March, with current Deputy CEO Tan Su Shan set to take over as the new leader. The increasing prevalence of AI technology has brought attention to its benefits and potential risks. For instance, the International Monetary Fund (IMF) predicted in 2024 that nearly 40% of all jobs globally will be affected by AI.

The IMF’s managing director, Kristalina Georgieva, emphasized that “in most scenarios, AI is likely to exacerbate overall inequality.” Meanwhile, the governor of the Bank of England, Andrew Bailey, previously stated in an interview with the BBC that while there are risks associated with AI technology, it should not be viewed as a mass destroyer of jobs. He noted that human workers will adapt and learn how to collaborate effectively with new technologies.