SINGAPORE – The Government Technology Agency of Singapore (GovTech) has begun a workforce restructuring that is expected to affect seven to nine per cent of its employees, or about 300 workers, over the next two years as it transitions to a new operating model.

GovTech said 93 officers have been retrenched after completing the first phase of the exercise, which is part of its shift from a one-off project delivery model to one centred on continuous product ownership, as reported by CNA.

The statutory board, under the Ministry of Digital Development and Information, employs about 3,900 permanent and contract staff and supports the technology needs of more than 50 government agencies.

In the first phase, 305 officers were identified for review. Of these, 102 were retained in their current roles, while 110 will be retrained through apprenticeship programmes and redeployed into new positions.

Two additional phases will be carried out over the next two years, with details of the second phase expected by November.

GovTech chairman Chng Kai Fong said the restructuring is intended to strengthen the agency's ability to develop, operate and continuously improve critical digital government services such as Singpass, Parents Gateway and CDC vouchers.

“This is not an AI-driven downsizing exercise. This shift began years before the current AI wave,” he said in a note to staff.

“GovTech is changing shape, not shrinking,” he added, noting that the agency expects to employ more people by the end of the transformation and will continue hiring software engineers, product managers, designers, data specialists and cybersecurity professionals.

Chief executive Goh Wei Boon said the agency needs to enhance its capability to “build, run and continuously improve” digital products as public services become more complex.

“Citizens and agencies expect digital services that are more secure, reliable and responsive to their needs,” he said.

GovTech said affected employees are being offered retraining, apprenticeships and redeployment where possible before retrenchment is considered.

Officers retrenched in the first phase will receive one month's salary for every year of service, capped at 25 years, in addition to a three-month ex gratia payment, salary and benefits during a six-week notice and handover period, and completion payments for those required to remain temporarily to support critical operations.

The Amalgamated Union of Statutory Board Employees (AUSBE) said it was consulted early in the restructuring process and worked with GovTech to expand retraining and redeployment opportunities.

The union also negotiated an enhanced support package, including a pro-rated performance bonus and six months of paid union membership for affected members.

Career coaches from National Trades Union Congress (NTUC) Employment and Employability Institute have been deployed to provide job placement and career coaching, with nearly 30 companies offering more than 300 technology-related vacancies.

The Ministry of Manpower said GovTech's retrenchment benefits exceed the recommendations under Singapore's Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.