DBS, Singapore's largest bank, announced plans to reduce approximately 4,000 temporary and contract positions over the next three years as it accelerates its artificial intelligence adoption across operations.
The workforce reduction will occur through natural attrition as specific projects reach completion, according to a DBS spokesperson. The bank currently employs between 8,000-9,000 temporary staff among its total workforce of 41,000 employees. Permanent staff positions will not be affected by these cuts.
While reducing contract roles, DBS plans to create around 1,000 new AI-related jobs, becoming one of the first major banks to outline how AI technology will reshape its operations. The bank already utilizes over 800 AI models across 350 different applications.
Outgoing CEO Piyush Gupta noted that DBS has been developing AI capabilities for over a decade. The bank expects the economic impact of its AI initiatives to exceed SGD 1 billion (US$745 million) by 2025.
The announcement comes as AI's impact on employment draws increased attention globally. The International Monetary Fund recently projected that AI could affect nearly 40% of jobs worldwide.
DBS has previous experience managing technology-driven workforce changes. In 2016-2017, the bank identified 1,600 redundant positions but successfully retrained and reassigned 1,200 employees to new roles.
While expanding AI usage across fraud detection, risk management, and customer onboarding, DBS maintains a measured approach to automating customer interactions due to concerns about AI accuracy.
The leadership transition at DBS will see current deputy chief executive Tan Su Shan take over from Gupta at the end of March 2024.