The Government Technology Agency of Singapore (GovTech) has begun a phased two-year restructuring exercise that will affect 7 to 9 per cent of its 3,900-strong workforce. In the first phase, 93 employees were retrenched as the agency transitions from a project-delivery model to one focused on in-house product ownership. The Public Service Division (PSD) clarified on July 17 that this move is specific to GovTech’s operational needs and is not part of a broader, public-service-wide retrenchment exercise.
GovTech leadership stated that the shift is necessary to build and manage digital products internally, allowing the agency to respond more quickly to national requirements. As the agency moves toward this product-led model, roles traditionally focused on project and vendor management are being consolidated or phased out. Officials emphasized that the restructuring is not driven by artificial intelligence or cost-cutting, but by the need for greater technical agility.
To mitigate the impact on staff, GovTech implemented a multi-stage transition process. Out of the 305 officers initially identified in the first phase, 102 were retained in their current roles, while 110 were offered apprenticeships to retrain for new capabilities. The 93 employees who were retrenched are receiving a support package that exceeds the recommendations set by the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.
The Amalgamated Union of Statutory Board Employees (AUSBE) was involved early in the process to negotiate enhanced support for affected staff. This includes a three-month ex-gratia payment, pro-rated performance bonuses, and career coaching services. While the agency continues to recruit for new technical roles, the current exercise marks a rare instance of retrenchment within the Singapore public sector.