Singapore’s Biggest Bank Plans 4,000 AI-Driven Job Cuts, Projects S$1B Gain

• Singapore’s DBS bank expects to cut 4,000 jobs over the next three years.
• The bank said it expects the positive economic impact of AI to surpass S$1 billion.
• Areas where AI could have the most impact on jobs include customer service.

Singapore’s Biggest Bank, DBS, expects to cut 4,000 roles over the next three years due to rising automation.

As AI takes on more jobs traditionally performed by humans, the bank’s chairman said technology’s economic impact is projected to surpass one billion Singaporean dollars ($746 million) in 2025.

DBS Job Cuts

While DBS hasn’t confirmed which roles will be affected, it said no permanent employees will lose their jobs.

Instead, the planned job cuts “will come from natural attrition as temporary and contract roles roll off over the next few years,” a DBS spokesperson told the BBC.

Artificial intelligence is increasingly being integrated across the financial sector to streamline customer service, prevent fraud, and boost productivity.

S$1 Billion AI Productivity Boost

By reducing the number of workers the bank has on its payroll and equipping employees to be more productive with their time, DBS expects to generate significant savings and returns.

According to DBS CEO Piyush Gupta, the “measured economic impact” of more than 800 AI models the bank uses is projected to exceed S$1 billion this year, the BBC reported.

Banks’ AI Adoption

The adoption of AI is rising across the banking sector. For instance, a 2024 Bank of England survey found that 75% of firms had incorporated AI into their processes, up from 58% in 2022.

Meanwhile, research by PYMNTS shows that the technology is most commonly used for fraud detection and risk management, where 64% of finance leaders reported using AI.

One area where the technology could have a major impact on jobs is customer service.

When StrataDecision surveyed leaders in the banking and financial services sector, just 12% said their institutions use AI tools for customer service.

Unlike the clunky chatbots and interactive voice response systems of the past, modern AI agents can often perform the same tasks as human call center workers.

Call centers have some extremely high attrition rates —between 30% and 45%, according to one estimate. This makes them an ideal target for the kind of layoff-free job cuts targeted by DBS.