Major Asian Bank to Slash 4,000 Jobs as AI Takes Over Roles

DBS Bank, Singapore’s largest financial institution, has announced plans to reduce its workforce by 4,000 positions over the next three years as artificial intelligence (AI) increasingly replaces jobs traditionally held by humans.

In a statement to the BBC, a DBS spokesperson explained that the job cuts would primarily occur through natural attrition, with temporary and contract roles being phased out over the coming years. The spokesperson emphasized that permanent staff members are not expected to be affected by the reduction.

Despite the job losses, the bank’s outgoing CEO, Piyush Gupta, reassured that DBS would also create approximately 1,000 new positions related to AI and technology. Gupta highlighted that DBS has been integrating AI into its operations for over a decade, with more than 800 AI models currently deployed across 350 use cases.

As one of the first major banks to publicly outline how AI will impact its workforce, DBS has not disclosed the specific number of job cuts that will occur in Singapore or which roles will be most affected. The bank currently employs between 8,000 and 9,000 temporary and contract workers, with a total workforce of about 41,000.

The company has made significant strides in AI, with Gupta predicting that the economic impact of these innovations will surpass S$1 billion (approximately $745 million or £592 million) by 2025.

Gupta, who is set to leave his role at the end of March, will be succeeded by the current deputy chief executive, Tan Su Shan.

The rise of AI technologies has sparked widespread debate on their implications for the global workforce. According to a 2024 report from the International Monetary Fund (IMF), AI is expected to affect nearly 40% of all jobs worldwide. IMF Managing Director Kristalina Georgieva warned that AI could exacerbate global inequality.

However, not all experts view AI as a threat to employment. Andrew Bailey, the Governor of the Bank of England, argued last year that while AI presents risks, it will not be a “mass destroyer of jobs.” Instead, he believes that workers will adapt to new technologies, and that AI holds great potential for improving productivity.

As the use of AI continues to expand across industries, DBS’s actions reflect the growing trend of automation reshaping the financial sector and other industries around the world.