GovTech retrenches 93 staff in 1st of 3 phases over next 2 years, shifting to new operating model

The Government Technology Agency of Singapore (GovTech Singapore) is retrenching about 7 to 9 per cent of its staff following a shift to a new operating model.

The first phase of the restructuring exercise saw 93 officers transitioning out of GovTech, it said in a press release on Jul. 15.

GovTech said the move comes as it evolves its operating model to deliver “faster, more secure, and more responsive digital services” for all Singaporeans.

This involves moving from a one-off project-delivery model to a continuous product-ownership model, the statutory board said.

In implementing the workforce transformation, GovTech was able to retain 102 officers in their roles, while 110 will be retrained into new roles through apprenticeships.

Of the 93 affected, 36 are expected to be laid off immediately.

Chairman: GovTech needs to own and run products ourselves

In a note to staff, GovTech’s chairman, Chng Kai Fong, explained that the agency must move from managing projects delivered by vendors to owning and running products itself.

This requires a different mix of skills, he said, adding that critical systems increasingly demand in-house capabilities so the agency can respond and adjust quickly to national needs.

The changes will be implemented progressively over the next two years in three phases.

The first phase covered six Government Digital Transformation (GDT) Forward Deployed Teams and one central GovTech function, Chng said.

The remaining two phases are expected to cover the rest of GDT’s Forward Deployed Teams.

Strategic shift

Calling the shift “strategic,” GovTech said it was driven by the “growing complexity and scale” of government digital services.

“It will strengthen our ability to realise our Smart Nation vision where technology serves the public good,” it said.

GovTech also clarified that the move was not driven by artificial intelligence, adding that it was not a cost-cutting or downsizing exercise.

“GovTech is changing shape, not shrinking… It will be a different GovTech, and not every current role maps onto it,” Chng said.

The affected roles are mainly in traditional project and vendor management, which are expected to become less necessary as more products are developed and operated in-house.

Chng also clarified that the decision on affected roles was not a judgement on an individual’s commitment, performance or value of their work.

“Some colleagues who are leaving have performed well in roles GovTech will need less of,” he said.

The judgement was narrow, based only on whether there is a credible fit with a specific role in the future organisation, he said.

While the change will affect the mix of roles and capabilities that GovTech needs, the overall demand for digital talent continues to grow, the agency said, adding that it is still actively hiring for some positions like software engineers, product managers, and designers.

Support through transition

GovTech has outlined four possible pathways for affected staff: capability development (apprenticeship), alternative public service placement, operational continuity and transition and support package.

Saying that supporting its workers through the change is its priority, GovTech said it has already “successfully redeployed and converted” a substantial number of officers into new roles.

It is also continuing to internally redeploy as many of its officers as possible, GovTech added.

Affected officers in project and vendor management roles will be offered full-salary apprenticeships and structured retraining programmes that combine technical and on-the-job training to enable them to transition into product ownership and related capabilities, GovTech said.

Moreover, GovTech is also standardising some of its services to deliver them more efficiently and effectively to users.

As such, roles tied to these services are being consolidated, with affected officers redeployed where possible, GovTech said.

GovTech said it recognises that not every officer will be able to “make this transition” and is working with the Public Service Division (PSD), the Skills and Workforce Development Agency (SWDA), and the Amalgamated Union of Statutory Board Employees (AUSBE) to provide them with personalised support.

Those transitioning out of GovTech will be given a support package tailored in partnership with the union.

Chng shared that this includes one month’s salary for every year of service, capped at 25 years, as well as a three-month ex gratia payment to provide additional support.

Affected staff will also continue to receive salary and benefits throughout the six-week handover and notice period.

They will also receive structured career guidance and active job matching, both within the public service and beyond, as well as an additional completion payment for colleagues asked to remain to complete handovers or operate critical systems.

Chng said: “We will support every affected officer with care and respect through this transition, whether they continue with GovTech, take up other roles in the Public Service, or move beyond it. Each of them helped build systems and services that Singaporeans use every day, and for that, we are grateful.”

This was also echoed by Goh Wei Boon, Chief Executive of GovTech.

"Citizens and agencies expect digital services that are more secure, reliable and responsive to their needs. This transformation will help GovTech to deliver such services", Goh said.

Union negotiated for and secured enhanced support package

In a statement on Jul. 15, the general secretary of AUSBE, Gabriel Ng, said it was informed of GovTech’s workforce restructuring plans early and has been working closely with the agency to support affected officers.

Ng said the union’s priority has been to mitigate the impact of the exercise and support affected officers, adding that it has worked closely with the agency to identify alternatives to retrenchment, including retraining, apprenticeship, and redeployment opportunities.

Ng said the union also successfully negotiated an enhanced support package that goes beyond the provisions in the collective agreement between the union and the agency.

Besides the collective agreement, AUSBE has partnered GovTech for affected officers to also receive (i) outplacement and transition support in the form of a three-month ex gratia payment; (ii) pro-rated performance bonus; and (iii) six months of paid union membership for AUSBE members.

The union has also connected affected staff to the Labour Movement’s network, including NTUC’s e2i (Employment and Employability Institute).

In addition, career coaches from NTUC’s e2i were on-site to provide personalised career coaching and job matching support for affected Singaporean and Permanent Resident officers, Ng said.

Those who require assistance can reach out to AUSBE at 62972097 or [email protected].

MOM's statement

The Ministry of Manpower (MOM) also said in a statement on Jul. 15 that it is aware that GovTech is conducting a restructuring exercise.

SWDA is working closely with GovTech, PSD, and other public agencies to facilitate redeployment within the public sector through the provision of skills advisory, career coaching and job matching, MOM said.

MOM added that GovTech has also committed to providing a payment package that goes beyond the recommendations set out in the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment (TAMEM) for those leaving the public sector.

SWDA and e2i are working closely with GovTech to support the affected workers. SWDA will provide tailored career coaching, job matching and employment support, MOM added.

This includes curating suitable job opportunities, recommending suitable reskilling pathways based on individual needs, and working with appointed employment agencies to broaden their access to outplacement opportunities.