DBS Group to Cut 4,000 Contract Jobs in AI Pivot

DBS Group, Southeast Asia’s largest bank, announced plans today to cut 4,000 temporary and contract jobs over the next three years. The bank explicitly linked the reduction to the rise of artificial intelligence, which it says is taking over tasks formerly done by humans, according to a report by Reuters.

Key Facts

• Impact: 4,000 temporary and contract roles to be cut over three years.
• Pivot: The bank plans to add roughly 1,000 new AI-related positions.
• Strategy: Reductions will occur through natural attrition; permanent staff are not affected.
• Source: Reuters, Mint

‘Struggling to Create Jobs’

The cuts represent a significant shift for the Singapore-based lender. CEO Piyush Gupta, speaking at an industry conference, offered a stark view of the changing labor market. “In my 15 years of being a CEO, for the first time, I’m struggling to create jobs,” Gupta said. “So far, I’ve always had a line of sight to what jobs I can create. This time I’m struggling to say how will I repurpose people to create jobs.”

The AI Trade-Off

While the bank is reducing its contract workforce, it is not stopping hiring entirely. DBS expects to add about 1,000 new roles specifically focused on artificial intelligence. This aligns with a broader industry trend where banks are using automation to fix inefficiencies and cut costs, rather than hiring humans for routine processing tasks. The bank stated that the cuts would affect contract workers across 19 markets.

Natural Attrition Planned

A spokesperson for DBS clarified that the reduction will happen gradually. As current contracts expire or projects finish, those roles simply will not be renewed. This “natural attrition” strategy is designed to protect permanent employees, who the bank says will not be impacted by this round of restructuring.