The impending job cuts at DBS Bank, attributed to advancements in artificial intelligence, highlight a significant shift in the banking sector, with AI expected to influence a substantial portion of the workforce globally.
DBS Bank to Eliminate 4,000 Roles Amidst AI Integration
DBS Bank to Eliminate 4,000 Roles Amidst AI Integration
Singapore's largest bank, DBS, plans to cut temporary and contract positions as AI takes on more responsibilities, while also creating new tech jobs.
DBS Bank, Singapore’s leading financial institution, has announced that it will be reducing around 4,000 roles over the next three years due to the growing implementation of artificial intelligence (AI) in its operations. According to a bank representative, the layoffs will primarily impact temporary and contract employees, with the reductions anticipated to occur through "natural attrition" as various projects are concluded. Permanent staff will remain unaffected.
Outgoing CEO Piyush Gupta noted that while the bank expects to cut back on a significant number of roles, it also anticipates generating approximately 1,000 new positions that will focus on AI-related tasks. Currently housing between 8,000 and 9,000 temporary workers, DBS has a workforce that totals around 41,000 employees.
Gupta stated that DBS has invested in AI technologies for over a decade, deploying more than 800 models across 350 use cases, with projected economic gains from these initiatives expected to surpass S$1 billion (about $745 million) by 2025. As Gupta prepares to depart at the end of March, the role will be taken over by current deputy CEO Tan Su Shan.
The impact of AI on job markets has been a subject of growing concern, with the International Monetary Fund (IMF) warning in 2024 that nearly 40% of jobs globally could be altered by AI advancements. Kristalina Georgieva, the IMF's managing director, has expressed worries that these changes may exacerbate existing inequalities. Conversely, Andrew Bailey, the governor of the Bank of England, suggested that AI will not lead to mass job losses, positing that workers will adapt to coexist with emerging technologies while exploring their potential benefits.
Outgoing CEO Piyush Gupta noted that while the bank expects to cut back on a significant number of roles, it also anticipates generating approximately 1,000 new positions that will focus on AI-related tasks. Currently housing between 8,000 and 9,000 temporary workers, DBS has a workforce that totals around 41,000 employees.
Gupta stated that DBS has invested in AI technologies for over a decade, deploying more than 800 models across 350 use cases, with projected economic gains from these initiatives expected to surpass S$1 billion (about $745 million) by 2025. As Gupta prepares to depart at the end of March, the role will be taken over by current deputy CEO Tan Su Shan.
The impact of AI on job markets has been a subject of growing concern, with the International Monetary Fund (IMF) warning in 2024 that nearly 40% of jobs globally could be altered by AI advancements. Kristalina Georgieva, the IMF's managing director, has expressed worries that these changes may exacerbate existing inequalities. Conversely, Andrew Bailey, the governor of the Bank of England, suggested that AI will not lead to mass job losses, positing that workers will adapt to coexist with emerging technologies while exploring their potential benefits.
