Another 38 staff will leave the Government Technology Agency of Singapore (GovTech) following its second round of layoffs, the agency confirmed on Thursday (22 October).
Responding to CNA’s queries, GovTech said the cuts mainly affect roles involving traditional project delivery.
GovTech said 106 officers will keep their current jobs, while another 106 can switch to new roles through conversion and apprenticeship schemes.
GovTech said it had prioritised retaining, retraining and redeploying officers wherever possible.
Third Round Expected in 2027
The latest cuts follow the retrenchment of 93 officers in July, when GovTech announced the first phase of its restructuring.
The agency previously said about 300 workers, representing 7 to 9 per cent of its workforce, would leave over a two-year exercise.
Before the restructuring, GovTech employed about 3,900 people, including contract staff, and served more than 50 government agencies.
CNA understands that the third and final round is expected in mid-2027.
Why GovTech Is Changing Its Roles
The restructuring centres on a change in how GovTech handles government digital services.
In its 4 August parliamentary response, the Ministry of Digital Development and Information explained that GovTech was moving towards continuous product ownership. This means teams take responsibility for designing and building digital products, then maintaining and improving them throughout their use.
As more products are built and operated in-house, the agency needs fewer traditional project and vendor management roles.
At the same time, it is hiring more software engineers, product managers, designers, data specialists, cybersecurity experts and platform engineers.
The ministry said GovTech’s overall workforce would grow, although the mix of skills required would change. It also said earlier efforts involving natural staff departures and targeted recruitment had not been sufficient to meet the agency’s needs.
Support for Departing Staff
The Amalgamated Union of Statutory Board Employees (AUSBE) said its enhanced support package applies to affected employees across all three phases.
In July, NTUC detailed additional benefits negotiated by AUSBE, including a three-month goodwill payment and a pro-rated performance bonus. AUSBE members would also receive six months of paid union membership.
Those benefits were additional to collective agreement provisions, which included one month’s pay for each year of service, capped at 25 years.
