DBS Group Holdings plans to cut around 4,000 of its contract and temporary staff workforce over the next three years as artificial intelligence increasingly takes on roles carried out by human beings.
Southeast Asia’s largest lender has approximately 8,000 to 9,000 of such staff, according to CEO Piyush Gupta replying to a query from Bloomberg News.
He confirmed a Press Trust of India news agency report, which said the bank will trim its workforce following further adoption of AI across its business.
Permanent staff will not be affected, the outgoing CEO said. DBS, based in Singapore, has around 41,000 staff and Tan Su Shan, currently deputy CEO, will succeed Gupta on March 28.
A DBS spokesperson also added: “The reduction in workforce will come from natural attrition as temp and contract roles roll off over the next few years.”
Global banks will cut as many as 200,000 jobs in the next three to five years as artificial intelligence encroaches on tasks currently carried out by human workers, said a Bloomberg Intelligence report last month.
See also: CIMB ready to accelerate, open to M&A
Chief information and technology officers surveyed for BI indicated that on average they expect a net 3% of their workforce to be cut, according to the report.
Still, many firms have stressed that the shift will result in roles being changed by technology, rather than replaced altogether.
Teresa Heitsenrether, who oversees JPMorgan Chase & Co.’s AI efforts, said in November that the bank’s adoption of generative AI was so far augmenting jobs.
See also: HSBC places some bankers on short-term retention amid overhaul
Update
DBS has issued a statement on Feb 25 stating that AI could reduce the need to renew the 4,000 temporary and, or contract staff across its 19 markets over the next three years. The people who may be potentially affected are working on specific projects, the bank's spokesperson notes.
“As such, we expect the reduction in workforce will come from natural attrition as these temporary and contract roles are completed over the next few years," the spokesperson adds. "We will continue to invest in upskilling and reskilling our employees to enable them to be future ready. We have identified around 13,000 staff for upskilling or reskilling and to date, over 10,000 have commenced their respective learning roadmaps, including on skills such as AI and data.”
- with additional reporting by The Edge Singapore
