Singapore’s GXS, the Grab and Singtel backed digital bank venture, is preparing to lay off staff as part of a shift in its operating model.
Information reported by The Business Times indicates that the group is reducing 82 positions across its Singapore and India operations, amounting to about 10 percent of its workforce.
The restructuring comes after GXS posted higher net interest income of S$30.2 million for the 2024 financial year, up from S$14.9 million the year before.
Losses, however, widened slightly to S$214.3 million from S$208.2 million.
The decision follows a strategic review of the bank’s organisational structure as it moves from its early build stage into a period focused on steady-state operations.
Management concluded that the roles required to run a full banking business differ from those needed when the bank was being established.
According to an internal communication from group chief executive Lai Pei-Si, the streamlining reflects this shift in operational priorities.
Lai said the bank had tried to reshape its structure through natural attrition and by hiring only for positions considered necessary in the coming years, but the pace of organic adjustments was slower than needed.
The Business Times also reported that the roles identified for removal were based on organisational needs rather than individual performance.
Employees affected by the review will receive support measures such as extended medical coverage, career transition assistance, counselling and severance packages that align with market norms.
The workforce changes come as GXS continues to scale its banking operations following the rollout of services in Singapore and Malaysia.
GXBank said its Malaysia operations is unaffected by the group-wide exercise, noting that the bank is adequately staffed and has evolved organically to meet its operational needs.
It added that management takes a long-term and prudent approach to ensuring the right talent is in place for sustainable growth in the market.
Editor’s note: GXBank has clarified that no roles in Malaysia are affected by the group-wide restructuring. The article and headline have been updated to reflect this.
Featured image: Edited by Fintech News Singapore, based on image by Freepik
