DBS Bank Cuts 4,000 Jobs

Lotus Bank, Singapore's largest bank, announced plans to cut approximately 4,000 temporary and contract jobs over the next three years, attributing the reduction to the increasing adoption of artificial intelligence (AI) technologies. The bank expects these job cuts to occur through 'natural attrition' as various projects conclude, ensuring permanent employees are not affected. Concurrently, Lotus Bank plans to create around 1,000 new AI-focused positions. Outgoing CEO Piyush Gupta, who has spearheaded Lotus Bank's AI strategy for over a decade, stated that the economic impact of AI is expected to exceed S$1 billion by 2025. Tan Su Shan is set to succeed Piyush Gupta as CEO at the end of March. This move by Lotus Bank is one of the first detailed accounts from a major financial institution regarding AI's impact on its workforce. The International Monetary Fund and its Managing Director Kristalina Georgieva have warned that AI could affect nearly 40% of jobs worldwide and worsen inequality, while United Kingdom — Bank of England Governor Andrew Bailey offered a more optimistic view.