DBS Group Holdings Ltd. plans to reduce its temporary and contract workforce by 4,000 over the next three years as artificial intelligence (AI) automates tasks traditionally performed by humans. The move aligns with the bank’s broader AI adoption strategy, which is reshaping operations across financial services.
AI-Driven Workforce Transformation at DBS
The Southeast Asian banking giant, which employs between 8,000 and 9,000 temporary staff, will implement the reduction through natural attrition, according to CEO Piyush Gupta. Speaking to Bloomberg News, Gupta confirmed that permanent employees will not be affected by the changes.
DBS currently employs around 41,000 staff, and Tan Su Shan, the current Deputy CEO, will succeed Gupta as CEO on March 28. The bank’s decision reflects a wider shift in the global banking industry, where AI is increasingly streamlining customer service, data processing, risk management, and fraud detection.
Banking Industry Braces for AI Job Disruptions
A Bloomberg Intelligence report last month estimated that global banks may cut up to 200,000 jobs over the next three to five years due to AI-driven automation. The report suggests that chief information and technology officers expect an average net workforce reduction of 3% as AI adoption accelerates.
Despite concerns over job losses, many financial institutions maintain that AI will primarily enhance rather than replace roles. Teresa Heitsenrether, who leads AI initiatives at JPMorgan Chase & Co., emphasized in November that generative AI is augmenting jobs rather than eliminating them entirely.
DBS Focuses on a Gradual Transition
DBS has framed the upcoming workforce reduction as part of a natural transition, stating that temporary and contract positions will gradually phase out rather than be abruptly cut. A DBS spokesperson reiterated that the downsizing will occur through attrition as AI solutions take on more operational tasks.
As AI continues to reshape global finance, banks must navigate workforce realignment while ensuring that technological advancements enhance efficiency, security, and customer experience. The industry’s challenge remains balancing AI-driven cost optimization with workforce sustainability in the evolving digital economy.
