The Government Technology Agency of Singapore (GovTech) has retrenched 93 employees as part of the first phase of a two-year workforce transformation plan. This restructuring, which aims to shift the agency from a project-delivery model to a continuous product-ownership model, is expected to affect between 7% and 9% of its approximately 3,900-strong workforce over the next two years. GovTech leadership emphasized that the move is a strategic evolution to ensure the agency can build and operate digital products in-house, rather than relying primarily on external vendors.
In the first phase of this transition, GovTech successfully retained 102 employees in their current roles, while another 110 were placed into apprenticeship programs to reskill for new positions. The 93 staff members who were retrenched include personnel in project delivery and vendor management roles across six forward-deployed teams and one central function. Agency chairman Chng Kai Fong clarified that the restructuring is not a cost-cutting exercise or a response to the rise of artificial intelligence, but rather a long-planned shift to improve the agency's agility and responsiveness to national needs.
To support those affected, GovTech provided a comprehensive package that exceeds standard recommendations. This includes one month’s salary for every year of service, capped at 25 years, a three-month ex-gratia payment, and continued salary and benefits during a six-week notice and handover period. The Amalgamated Union of Statutory Board Employees (AUSBE) was engaged early in the process, allowing for the negotiation of these enhanced terms and the provision of career transition support, including job matching services through NTUC’s e2i.
Looking ahead, GovTech will continue its phased restructuring over the next two years, with the remaining phases expected to cover other forward-deployed teams. While the agency is reducing certain roles, it maintains that it is changing its organizational shape rather than shrinking, and it expects to employ a larger workforce by the end of the transition period. The public can expect the agency to continue its focus on delivering secure and responsive digital services as it integrates these new internal capabilities.