DBS Bank to Cut 4,000 Roles as AI Reshapes Workforce

In a significant move reflecting the growing influence of artificial intelligence (AI) in the financial sector, Singapore’s largest bank, DBS, has announced plans to reduce its workforce by 4,000 positions over the next three years.The job cuts are expected to occur through natural attrition, with temporary and contract positions being phased out. Importantly, permanent staff will not be affected by these layoffs, as the bank plans to create approximately 1,000 new AI-related roles.

DBS has been at the forefront of AI investment for over a decade. Chief Executive Piyush Gupta revealed that the bank currently operates over 800 AI models across 350 use cases, with these models projected to generate an economic impact of over S$1 billion (approximately $745 million) by 2025.

The announcement comes amid global discussions about the impact of AI on employment. The International Monetary Fund (IMF) has warned that AI could affect nearly 40% of jobs worldwide, potentially exacerbating inequality. However, Bank of England Governor Andrew Bailey has emphasized that AI should not be viewed as a “mass destroyer of jobs,” highlighting the potential for workers to adapt to new technologies.

Piyush Gupta is set to step down as CEO in March, with Deputy CEO Tan Su Shan assuming leadership. While the full details of the affected roles and regions have yet to be disclosed, this move positions DBS as one of the first major banks to reveal the extent of AI’s impact on its workforce.

As AI continues to advance, the broader financial sector is expected to follow suit, navigating the balance between job reductions and the creation of new roles driven by AI innovations.