GovTech retrenches 93 staff as it evolves its operating model, 7-9% of jobs to be affected eventually

GovTech says shift that led to retrenchment not driven by AI or cost-cutting intentions

The Government Technology Agency of Singapore (GovTech) has retrenched 93 staff members, in a rare case of public-sector layoffs in Singapore.

The move was necessary as the agency evolves its operating model, with 7% to 9% of jobs to be affected eventually, said an NTUC press release.

Over 300 GovTech jobs to be affected

GovTech, which is a statutory board under the Ministry of Digital Development and Information (MDDI), announced the layoffs on Wednesday (15 July).

As it has about 3,600 employees, more than 300 are expected to be affected eventually.

In the near term, 93 roles have been made redundant, according to NTUC.

GovTech to build more products in-house

The decision was made as GovTech moves from a “one-off project-delivery model” to a “continuous product-ownership model”, a GovTech spokesperson said.

This means more products will be built and operated in-house, thereby reducing its reliance on traditional project and vendor management roles.

Instead, GovTech will be hiring more software engineers, product managers, designers, data specialists, cybersecurity experts, and platform engineers under the new model.

Shift not driven by AI or cost-cutting intentions

GovTech Chief Executive Goh Wei Boon said that as digital services continue to grow in scale and complexity, citizens and agencies expect them to be more secure, reliable and responsive to their needs.

Thus, the new operating model will help GovTech deliver such services and strengthen its ability to build, run and improve the products it owns, also boosting the agency’s ability to achieve Singapore’s Smart Nation objectives.

The shift is not being driven by artificial intelligence (AI) or cost-cutting intentions, GovTech noted.

GovTech informed union of retrenchment early

NTUC said the Amalgamated Union of Statutory Board Employees (AUSBE) was informed of the retrenchment early.

The 93 staff retrenched were given one month’s notice and will receive one-month’s pay for every year of service, capped at 25 years of service.

After the union’s negotiations with GovTech, they will also get a three-month ex-gratia payment, a pro-rated performance bonus, and six months of paid union membership for AUSBE members.

AUSBE also provided career transition support by linking those retrenched with the Labour Movement’s employment network, including the Employment and Employability Institute (e2i).

e2i career coaches were deployed on-site to provide personalised career coaching and job matching support.

Early engagement made ‘meaningful difference’

In a Facebook post on Wednesday, NTUC Deputy Secretary-General Desmond Choo said it made a “meaningful difference” that GovTech engaged AUSBE early.

That meant they could identify alternatives to retrenchment to reduce the impact on officers.

AUSBE could also negotiate for enhanced support beyond the Collective Agreement for the 93 ultimately affected, he noted, adding:

We are committed to helping the affected GovTech workers for as long as they take to land another opportunity.

Also read: ‘One meeting away from getting fired’: S’poreans discuss how to ‘keep going’ despite knowing layoffs are a possibility

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Featured image adapted from Tan Wei Hao on LinkedIn.