GovTech retrenchment: 42% of 93 affected workers were in their 40s, says Singapore minister

Workers aged between 40 and 49 accounted for 42% of the 93 employees retrenched by Singapore’s Government Technology Agency (GovTech) in July, as part of a two-year restructuring exercise aimed at reshaping the agency’s workforce to meet changing technology demands.

Senior Minister of State for Digital Development and Information Jasmin Lau, who is also the minister-in-charge of GovTech, provided the figures in Parliament on August 4 in response to questions from MPs on the profile of affected employees, alternatives to retrenchment and the agency’s workforce transformation plans.

Lau said the 40-to-49 age group also represented 42% of the 305 employees affected in the first phase of the restructuring, meaning workers in this age bracket were not over-represented among those who lost their jobs.

About 30% of the 93 retrenched employees were aged above 50, she added.

Of the 305 employees affected in the first phase, 93 were retrenched, 102 were retained or redeployed into other roles, while 110 were placed on structured job conversion and apprenticeship pathways.

“There is no significant difference in tenure between the exiting officers and those on retraining pathways,” Lau said.

The retrenched employees had a median tenure of 5.4 years, compared with six years for those undergoing retraining. Around two-thirds of affected employees were individual contributors, while one-third were team leaders. 

The workforce changes form part of GovTech’s broader plan to reshape its 3,900-strong workforce over the next two years. The agency expects between 7% and 9% of its roles, or roughly 300 positions, to be affected by the restructuring.

GovTech said in July that the transformation would shift its focus from managing projects delivered by external vendors towards owning and operating digital products in-house.

Lau said the agency first assessed the roles and capabilities required for its future operating model before evaluating individual employees based on their competencies, domain expertise, job fit and readiness.

Technology leaders across government agencies, including chief information officers and practice leads, were also consulted, although the final workforce decisions were made centrally by GovTech.

The restructuring is intended to support a move from a one-off project delivery model towards continuous product ownership, with GovTech expected to take greater end-to-end responsibility for the government’s digital platforms and services.

“GovTech’s workforce will grow because of this shift, but its composition will also need to change,” Lau said.

The agency is expected to increase its hiring of software engineers, product managers, designers, data specialists, cybersecurity experts and platform engineers, while reducing its reliance on roles focused on project and vendor management.

Lau said GovTech had already invested in pilots, apprenticeships and other pathways to retrain or redeploy employees, but these efforts could not address the workforce changes at the required pace and scale.

“Meanwhile, technology is changing fast, and GovTech must keep up. Because if we fall behind, the quality of our digital products and services for our citizens will suffer,” she said in Parliament.

The government has also sought to support affected employees in finding alternative roles. GovTech is working with the Public Service Division, the Skills and Workforce Development Agency and NTUC’s e2i on job matching and referrals.

Lau said more than 300 relevant job opportunities had been identified for affected employees across close to 30 companies. Workers who are interested in these opportunities are currently progressing through application and interview processes.

Those affected will also receive financial and transition support, career guidance and job-placement assistance.

Lau said the retrenched employees remained on GovTech’s payroll following the retrenchment notice, allowing them time to hand over their responsibilities and explore new opportunities.

“Many of them are focusing very much on the handover of the work, and some even tell us that they will do that first before they look around for opportunities elsewhere,” she said.

The retrenched officers received one month’s notice and one month’s salary for each year of service, capped at 25 years, under their collective agreement. They also received a three-month ex-gratia payment, a pro-rated performance bonus and six months of paid union membership for members of the Amalgamated Union of Statutory Board Employees.

Lau said GovTech would monitor the affected employees’ progress through its job-placement efforts to ensure they have viable transition pathways.

The minister also addressed concerns over whether affected workers could simply be moved to other government agencies.

“Matching an officer to a role in other government agencies is not something GovTech can do unilaterally by just comparing a resume against a list of vacancies,” she said, noting that hiring agencies have their own recruitment processes, including interviews and assessments.

For the wider public-sector technology workforce, Lau said mid-career professionals with backgrounds in project and vendor management continue to bring valuable experience that can be transferred into product-oriented roles.

However, they will need to develop skills in areas including agile delivery, user-centred design, cybersecurity, data, cloud technologies and digital product management.

“We recognise that technology will continue to evolve, and the skills required of technology professionals will also have to evolve in tandem,” Lau said.

The government will continue to support reskilling and upskilling through programmes such as the Infocomm Media Development Authority’s TechSkills Accelerator, GovTech’s Digital Academy and training opportunities offered in partnership with institutes of higher learning.

Lau also said the restructuring should not be interpreted as a move to eliminate external vendors. GovTech will continue to work with vendors where they provide specialised expertise that complements its internal capabilities.

She said the agency would improve how it communicates future phases of the transformation to ensure employees, partners and the wider technology industry understand which roles and functions are changing.

The second phase of GovTech’s restructuring is expected to be announced by November. Lau said the agency would also shorten the period employees spend waiting to exit after being informed of retrenchment, as prolonged uncertainty can increase anxiety among affected workers.

The transformation comes as public-sector technology teams face growing demand for digital products that are secure, reliable and continuously improved. 

Lau said the success of GovTech’s restructuring would ultimately be assessed by whether affected employees receive meaningful transition support, whether the agency builds the capabilities needed for its future operating model, and whether it can deliver more effective digital services to Singaporeans.