DBS Group Holding’s outgoing CEO, Piyush Gupta, announced that the company plans to lay off 4,000 contract and temporary staff roles over the next three years as artificial intelligence (AI) increasingly takes on roles carried out by human beings.
Gupta made this announcement at an industry conference in Mumbai, India, yesterday (February 24), where he added that permanent staff will not be affected. However, he also shared that 1,000 new positions will be added in AI, CNA reports.
In my 15 years of being a CEO, for the first time, I’m struggling to create jobs. So far, I’ve always had a line of sight to what jobs I can create. This time, I’m struggling to say how I will repurpose people to create jobs.
Piyush Gupta, outgoing CEO of DBS Group Holdings at a industry conference in Mumbai, India
Currently, the company has 8,000 to 9,000 employees in such positions and has a total headcount of around 41,000 staff.
In a separate article by The Straits Times, a spokesperson from DBS clarified that the company’s reduction in workforce will come from “natural attrition” as temporary and contract roles “roll off over the next few years.”
Vulcan Post has also reached out to DBS Group Holdings for additional comments.
AI replacing human roles at banks
According to a Bloomberg Intelligence (BI) article in January, global banks will cut as many as 200,000 jobs in the next three to five years as AI encroaches on tasks currently carried out by human workers.
Chief information and technology officers surveyed for BI indicated that, on average, they expect a net 3% of their workforce to be cut. The report also shared that back and middle office roles and operations are most likely to be affected.
“Any jobs involving routine, repetitive tasks are at risk. But AI will not eliminate them fully, rather it will lead to workforce transformation,” stated Tomasz Noetzel, a senior analyst from Bloomberg Intelligence, who also penned the report.
However, this might lean more towards a “utopian view” for some, like Gupta. While he appreciated the perspective that people will continue to find jobs, he warned that there might be “massive dislocations,” The Hindu reports.
“We are getting a lot of jobs, the cyber security specialists, the AI people. But a lot of my traditional operations people, the clerical staff, all the time, it’s not easy for them to transition [to new jobs created],” said the banking veteran, highlighting the effects of AI on jobs.
But not all hope is lost
With that said, there are ways for those in similar positions to “change” your predicament. We previously reported the five skills that Singaporeans can build to do what machines can’t. Here’s a list:
- Data analysis and critical thinking skills
- Building functional and job-specific expertise
- Project Management
- Creativity
- Advanced digital skills (eg. programming, AI literacy, etc)
However, we also found that 19% of Singaporeans dedicate no time to reskill, which is above the regional average of 13%. This is where employers can play a pivotal role in helping employees build up their arsenal beyond degrees and paper qualifications.
Vulcan Post has reached out to DBS on how they plan to help employees navigate the AI revolution, but they have yet to respond.
- Read more articles on Artificial Intelligence here.
- Read more articles we have written on Singaporean businesses here.
Featured Image Credit: DBS Bank
