Singapore banks cut nearly 3,000 jobs as AI and restructuring redefine workforce

Singapore’s three largest banks, DBS, OCBC and UOB, collectively shed nearly 3,000 roles in 2025, reflecting a broader global shift toward leaner, technology-driven banking operations.

Combined headcount across the trio stood at 104,266 at the end of 2025, down 2.6% from 107,072 a year earlier, according to Bloomberg data and company disclosures. 

The reductions were not framed as sweeping layoffs, but rather as the outcome of restructuring, natural attrition and a more disciplined approach to workforce planning.

DBS led the decline, accounting for roughly three-fifths of the total reduction. Its workforce fell by 3.9%, or 1,624 employees, to 39,721. 

The bank attributed the drop largely to post-integration efficiencies following its earlier deals in Taiwan and India, alongside contract non-renewals and normal staff turnover. It maintained that overall staffing levels remained stable across core operations, with nearly half of open roles filled internally.

At OCBC, headcount dipped by 1% to 33,323. The bank signalled a more targeted hiring strategy, focusing on growth areas while acknowledging that roles are evolving as technology reshapes the workplace. 

Meanwhile, UOB reduced its workforce by 2.6% to 31,222, citing routine workforce movements and a cautious hiring stance amid global economic uncertainty.

AI and productivity reshape hiring

While none of the banks directly linked the job cuts to artificial intelligence, the direction of travel is clear. Across the sector, AI is increasingly influencing how banks think about workforce size and skills.

DBS, for instance, said earlier in 2025 that it expects to reduce around 4,000 temporary and contract roles over three years through natural attrition as AI takes on more routine tasks. At the same time, it is investing heavily in reskilling employees to work alongside new technologies.

OCBC reported that a majority of its workforce has already undergone training in AI, data or digital capabilities, while UOB has been encouraging employees to integrate AI tools into their day-to-day work to drive efficiency.

Part of a global pattern

The workforce pullback in Singapore mirrors uneven trends across global banking. Some lenders, including Wells Fargo, have cut staff significantly, while others such as JPMorgan and Goldman Sachs have continued selective hiring, particularly in high-skill areas.

Analysts say the shift is less about contraction and more about recalibration. According to Morningstar’s Kathy Chan, the reductions are likely to support cost savings in the near term, though these could be partially offset by rising investment in technology and higher-cost AI talent.

Over time, however, banks are expected to benefit from improved cost-to-income ratios as automation and digital capabilities drive both efficiency and new revenue streams.

The changes signal a structural transition: fewer routine roles, more specialised skills, and a workforce increasingly designed to operate alongside machines rather than in place of them.