GovTech retrenches 38 employees in second phase of layoffs

The Government Technology Agency of Singapore (GovTech) is retrenching 38 employees in the second phase of its planned workforce reduction.

In a statement to AsiaOne on Thursday (Oct 22), GovTech said it was implementing the second phase of its workforce transformation as part of its shift towards taking greater ownership of the digital products and services it builds and operates.

"As with the first phase, we have prioritised retaining, retraining and redeploying officers wherever possible," it said. 

GovTech added that 106 officers will remain in their current roles, while another 106 are eligible for conversion and apprenticeship pathways to transition into new roles. 

Another 38 officers will leave the agency. 

The roles affected are primarily those structured around traditional project delivery. 

"Officers who are on the apprenticeship programme are at different stages of the conversion. We will continue to support them through the assessment and transition process," said GovTech. 

"We recognise that these changes are difficult for affected colleagues," it added, noting that it would continue working with the Public Service Division, the Skills and Workforce Development Agency and the Amalgamated Union of Statutory Board Employees to provide support to affected staff.

All affected staff members were informed by the end of Thursday. 

Shift towards in-house digital capabilities

The latest exercise is the second of three phases in GovTech's planned workforce reduction, which will affect staff deployed to 23 Government agencies.

Across the first two phases, 131 officers have been retrenched.

The final phase of retrenchment is expected to take place in mid-2027, with staff informed of the plan during a company-wide town hall last month, according to CNA. 

On July 15, GovTech said it aimed to reduce its workforce by seven to nine per cent as it transitioned to a new operating model.

In the first phase, 305 officers from GovTech headquarters and teams deployed to Government agencies were affected. 

Of these, 102 remained in their current roles, while another 110 were to undergo apprenticeships to transition into other capabilities.

GovTech has said the workforce transformation is not driven by artificial intelligence or intended as a cost-cutting or downsizing exercise. 

As more products are built and operated in-house, the proportion of traditional project and vendor management roles will gradually decrease, said GovTech.

In August, Acting Manpower Minister Jasmin Lau said in Parliament that GovTech was looking into shortening the transition period for affected officers where possible, to reduce prolonged uncertainty and anxiety for them and their teams.

"GovTech will aim to shorten this period whenever possible, so that officers reach clarity on their next steps more quickly rather than remaining in a state of limbo for longer than necessary." 

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