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Singapore GovTech Cuts Another 38 Jobs in Second Round of Layoffs
Singapore's Government Technology Agency (GovTech) confirmed on Oct 22 a second round of layoffs affecting 38 employees, mainly in traditional project delivery roles. Combined with 93 cuts in July, 131 have been retrenched so far. The agency says the move is not driven by AI replacement or cost-cutting, but by a shift to a "continuous product ownership" model; a third round is expected in mid-2027.
Why it matters
GovTech is the central technology agency behind Singapore's government digital services, employing about 3,900 people (including contract staff) and serving more than 50 government agencies. This is the second of three planned rounds in a two-year workforce transformation; 131 of the expected 270–350 (7–9% of headcount) have been cut so far, with the largest round expected in mid-2027.
Full report
On Thursday (Oct 22), GovTech confirmed to CNA that it is retrenching another 38 employees, with affected roles primarily structured around traditional project delivery.
The workforce review also covered 250 other officers: 106 will remain in their current roles, while another 106 are eligible for conversion and apprenticeship pathways into new roles. GovTech said it had prioritised retaining, retraining and redeploying officers wherever possible.
The first round took place in July 2026, when 93 officers were retrenched. CNA understands the third and final round is expected in mid-2027; by the agency's stated totals, that round could see nearly 170 departures — the largest of the three.
The restructuring moves GovTech toward "continuous product ownership": teams design, build and operate government digital products over their full lifecycle, reducing reliance on vendors and on traditional project/vendor management roles. The agency says it is also hiring more software engineers, product managers, designers, data specialists and cybersecurity experts, and expects to employ more people once the transformation is complete.
GovTech has stressed the exercise is not driven by AI adoption or cost-cutting. Affected officers will receive career coaching, job matching and placement assistance through the Public Service Division, the Skills and Workforce Development Agency and the Amalgamated Union of Statutory Board Employees (AUSBE). AUSBE told The Business Times the second phase is expected to be completed by November.
The compensation package announced with the July round: one month's salary for every year of service (capped at 25 years), a three-month ex-gratia payment, and salary and benefits through a six-week handover and notice period.
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