Singaporean lender DBS Group is set to reduce its employee headcount by 10% over the next three years as it incorporates AI more deeply into its business.
This move is expected to impact around 4,000 employees.
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At an event organised by Indian IT industry body Nasscom, DBS CEO Piyush Gupta stated that AI’s uniqueness makes workforce restructuring inevitable.
Attributing his outlook to AI’s rise, Gupta said: “AI is very powerful. It can self-create and mimic.” He also noted that in the past decade, the group has not seen any job cuts.
The banking giant has a history of digital innovation, having previously undergone a major transformation between 2016 and 2017 that impacted 1,600 jobs.
During that period, employees were reskilled and moved to new roles with union support. However, AI integration now presents a more complex challenge for workforce restructuring.
DBS has been using generative AI solutions for the past two years, applying them to functions like customer outreach, credit underwriting, and hiring.
Despite the benefits, the bank remains cautious about AI-generated errors, known as hallucinations, which could hinder the full automation of customer interactions.
Last month, DBS Group increased its stake in Shenzhen Rural Commercial Bank Corporation (SRCB) to 19.40% from 16.69%.
The move supports the group’s strategy to concentrate on its core markets while expanding its presence in the Greater Bay Area.
DBS acquired a 13% stake in SRCB in October 2021, increasing it to 16.69% in January 2024.
