DBS to cut 4,000 contract and temporary roles as AI adoption grows

DBS Group is set to reduce its contract and temporary workforce by approximately 4,000 over the next three years as AI takes on more tasks traditionally performed by human employees, outgoing CEO Piyush Gupta has confirmed.

Speaking to the Press Trust of India, Gupta stated that the reduction will occur through natural attrition as short-term roles phase out. A DBS spokesperson reiterated this point in response to media queries but did not disclose specifics on how many Singapore-based employees would be affected or which job functions would be impacted.

The bank, headquartered in Singapore, currently employs between 8,000 and 9,000 contract and temporary staff, while its total workforce stands at around 41,000. Gupta assured that permanent employees would not be affected by the changes. He is set to be succeeded by Deputy CEO Tan Su Shan on 28 March 2025.

READ MORE: DBS reinforces commitment to innovation and employee growth

The planned workforce reduction aligns with broader trends in the financial sector, where global banks are increasingly leveraging AI to streamline operations. A January 2024 report from Bloomberg Intelligence estimated that banks worldwide could cut as many as 200,000 jobs over the next three to five years due to AI-driven efficiencies. Chief information and technology officers surveyed for the report projected an average net workforce reduction of 3% as a result of automation.

However, many financial institutions emphasise that AI is more likely to transform roles rather than eliminate them entirely. For example, JPMorgan Chase’s AI head Teresa Heitsenrether noted in late 2024 that generative AI (GenAI) was augmenting jobs rather than replacing them outright, reported Bloomberg.