DBS CEO sees job cuts of 4,000 temp staff as AI replaces roles

Southeast Asia’s largest lender has approximately 8,000 to 9,000 of such staff, according to Chief Executive Officer Piyush Gupta

DBS Group Holdings Ltd. 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 Chief Executive Officer 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.

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.  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.

The reduction in workforce will come from “natural attrition” as temporary and contract roles roll off over the next few years, according to a DBS spokesperson.