DBS Halts Hiring for Roles Likely Replaced by AI, Plans Job Cuts for 4,000 Temp Staff
- ByStartupStory | November 7, 2025
DBS Group Holdings, Southeast Asia’s largest bank, is strategically halting recruitment for positions expected to be automated or replaced by artificial intelligence (AI) technologies, according to CEO Tan Su Shan. The move follows the bank’s announcement to reduce its contract and temporary workforce by approximately 4,000 over the next three years as AI adoption intensifies across banking operations.
Former CEO Piyush Gupta had previously indicated that AI-driven automation will replace many roles traditionally suited for contract and temporary staff, who constitute about 8,000 to 9,000 workers at DBS. The reduction is planned to happen largely through natural attrition, with no immediate impact on permanent employees.
Tan Su Shan acknowledged the challenges AI poses to traditional job roles but emphasized that DBS’s approach is to manage this transition responsibly. The bank aims to re-skill and redeploy workers into areas aligned with emerging digital and AI-enabled business opportunities.
Globally, banks and financial services firms anticipate significant workforce transformations, projecting up to 200,000 job reductions across the industry due to AI and automation over the next five years. Many firms stress that while AI will replace routine tasks, it will also create new employment opportunities requiring advanced skills in technology, data analysis, and client advisory.
DBS’s hiring freeze reflects broader industry trends where human roles are being redefined. Some entry-level and operational roles, including routine administrative and data entry tasks, face the greatest risk of automation. Conversely, strategic, relationship-oriented, and AI management positions are poised for growth.
The bank is investing in AI-driven digital platforms, analytics, and cybersecurity, which demand a workforce with a new mix of skills. Efforts include upskilling programs, digital literacy training, and partnerships with educational institutions to build sustainable talent pipelines.
In summary, DBS’s decision to halt hiring for AI-replaceable roles and cut 4,000 temporary jobs underscores the profound impact of AI technology on the financial sector’s workforce structure. By balancing automation with human capital development, DBS aims to remain competitive while navigating the complex challenges of the AI-driven future of work.
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