BUSINESS – DBS Group Holdings Ltd., Southeast Asia’s largest bank, plans to reduce its contract and temporary workforce by approximately 4,000 positions over the next three years due to increased adoption of artificial intelligence (AI) technologies. This move represents about 10% of the bank’s total workforce. CEO Piyush Gupta announced the decision at an industry conference in Mumbai, highlighting that AI is increasingly taking over tasks traditionally performed by humans. He noted that this shift presents a unique challenge in creating new job opportunities, marking a departure from his previous experiences as CEO.
The reduction will primarily affect the bank’s 8,000 to 9,000 contract and temporary staff, with permanent employees remaining unaffected. A DBS spokesperson clarified that the decrease will occur through natural attrition as these roles phase out over the coming years. Despite the reduction, DBS plans to create 1,000 new positions focused on AI, reflecting the bank’s commitment to integrating advanced technologies into its operations. Gupta emphasized the unprecedented nature of this transition, stating, “In my 15 years of being a CEO, for the first time, I’m struggling to create jobs.”
This development aligns with broader industry trends, as global banks are increasingly leveraging AI to enhance efficiency and reduce operational costs. A recent Bloomberg Intelligence report suggests that banks worldwide may eliminate up to 200,000 jobs in the next three to five years due to AI-driven efficiencies. Gupta is set to be succeeded by Deputy CEO Tan Su Shan on March 28, 2025. As DBS navigates this technological transformation, the bank aims to balance operational efficiency with workforce considerations, ensuring a smooth transition for affected employees.
The strategic shift underscores the growing impact of AI across the financial sector, prompting institutions to adapt their workforce strategies in response to technological advancements.
