Singapore’s largest bank, DBS, has announced plans to cut 4,000 jobs over the next three years as artificial intelligence (AI) takes on more tasks traditionally handled by humans.
A DBS spokesperson revealed that the workforce reduction will come through natural attrition as temporary and contract roles gradually phase out. Permanent staff are not expected to be affected by these cuts.
The bank also plans to create approximately 1,000 new AI-related jobs, signaling a major shift toward technology-driven operations.
DBS is one of the first major banks to provide clear details on how AI will reshape its workforce. Although the bank did not specify how many jobs would be cut in Singapore or which roles will be impacted, the move reflects a broader trend of AI integration in the financial sector.
DBS currently employs about 41,000 people worldwide, including 8,000 to 9,000 temporary and contract workers.
Outgoing chief executive Piyush Gupta said the bank has been developing its AI capabilities for over a decade. DBS now uses more than 800 AI models across 350 business applications. Gupta also noted that the bank expects these AI tools to deliver more than S$1 billion ($745 million) in economic benefits by 2025.
The workforce shift comes as DBS undergoes a leadership change. Piyush Gupta will step down at the end of March, with current deputy chief executive Tan Su Shan set to replace him.
The rise of AI has sparked global discussions about its effects on employment. The International Monetary Fund (IMF) has warned that AI could impact nearly 40% of jobs worldwide, potentially increasing income inequality.
Despite concerns, Bank of England governor Andrew Bailey has expressed optimism. In a recent interview, he stated that while AI presents challenges, it also offers significant opportunities. Bailey believes AI will not lead to mass job losses and expects human workers to adapt to new technologies.
As DBS moves forward with AI integration, the banking industry continues to evolve, balancing technological innovation with human employment.
