Singapore banks reduced headcount by nearly 3,000 roles in 2025, with DBS accounting for most of the decline as local lenders restructured operations and took a more selective approach to hiring.
DBS, OCBC and UOB had 104,266 employees at the end of 2025, down 2.6 percent from 107,072 a year earlier, The Business Times reported, citing Bloomberg data and the banks’ annual reports.
The decline was not presented as a broad retrenchment exercise.
The banks instead pointed to factors including integration-related changes, regular staff turnover, contract non-renewals and tighter workforce planning.
DBS posted the largest drop, with headcount falling by 1,624, or 3.9 percent, to 39,721.
The bank linked the reduction mainly to efficiencies after earlier deals in India and Taiwan, as well as attrition and contracts that were not renewed.
The lender completed its acquisition of Citi’s consumer banking business in Taiwan in 2023.
In India, Lakshmi Vilas Bank was amalgamated with DBS Bank India in 2020.
AI Becomes a Larger Workforce Factor
OCBC’s headcount fell by 333, or 1 percent, to 33,323. The bank indicated that recruitment continued where needed, particularly in growth areas, while roles change as technology reshapes the workplace.
UOB reduced headcount by 849, or 2.6 percent, to 31,222. The bank linked the change mainly to routine workforce movements and a measured approach to hiring amid a more uncertain global environment.
The three banks did not specify whether permanent employees or temporary and contract staff were more affected.
They also did not directly attribute the lower headcount to productivity gains from artificial intelligence.
AI is nevertheless becoming a bigger part of workforce planning in banking.
DBS announced in February 2025 that it expected to reduce about 4,000 temporary and contract roles over three years, mainly through natural attrition, as AI takes on more work. Permanent employees were not affected.
The bank has also been investing in AI tools and staff training.
OCBC has rolled out AI, digital and data-related programmes for employees, while UOB has encouraged staff to use AI to improve efficiency.
Morningstar equity analyst Kathy Chan noted that the headcount reductions could support cost savings for Singapore banks in 2026, although part of those savings may be offset by higher spending on technology and specialised AI talent.
Featured image: Edited by Fintech News Singapore, based on image by rawpixel.com via Freepik
