GovTech retrenches 38 staff in 2nd phase of workforce transformation

The second of three planned phases of retrenchments at the Government Technology Agency of Singapore (GovTech) took place on Oct. 22, the agency confirmed in response to Mothership's queries.

Following a review which primarily concerned roles structured around traditional project delivery, 38 officers were retrenched.

106 officers will remain in their current roles while another 106 are eligible for conversion and apprenticeship pathways to transition into new roles.

Employees from about 20 teams were affected, Mothership understands.

GovTech previously retrenched 93 workers in July 2026.

At the time, the statutory board said the move resulted from efforts to evolve its operations to deliver “faster, more secure, and more responsive digital services” for all Singaporeans.

GovTech intends to let go of seven to nine per cent of its workforce, affecting staff deployed to 23 government agencies.

One-on-one consultations on Oct. 22

Responding to Mothership's queries, GovTech confirmed that one-on-one consultations with affected staff took place today.

"GovTech is implementing the second phase of its workforce transformation, as part of our shift towards taking greater ownership of the digital products and services we build and operate," the agency said.

It said that the roles affected in this phase are primarily those structured around traditional project delivery.

Officers on apprenticeship programmes are at different stages of the conversion, the agency explained.

"We will continue to support them through the assessment and transition process," GovTech said.

GovTech also said:

"We recognise that these changes are difficult for affected colleagues. We will continue to work with PSD, SWDA, and AUSBE to provide support, including career coaching, job matching and placement assistance, and help officers move into suitable opportunities across Public Service and in the private sector."

Union providing support to affected workers

In response to queries from Mothership, Gabriel Ng, General Secretary of Amalgamated Union of Statutory Board Employees (AUSBE), said the union is aware of GovTech's latest phase of layoffs.

It is working closely with the agency to support affected officers, Ng said.

Ng said that the second phase of GovTech's layoffs is expected to be completed by November 2026.

"Since the first phase of retrenchment in July 2026, AUSBE’s priority has been to safeguard the interests of affected officers," Ng said.

"The union has been working with GovTech Singapore to explore alternatives, including opportunities for retraining, apprenticeship and redeployment for the affected officers," Ng added.

Ng shared that AUSBE had successfully negotiated an enhanced support package beyond the provisions of the collective agreement for officers exiting the agency.

"The package was negotiated at the onset of the restructuring exercise and will continue to apply to affected officers across all phases," Ng said.

The National Trades Union Congress' Employment and Employability Institute has also invited affected workers to a virtual tech job opportunities briefing on Nov. 12.

Strategic shift over next two years

Explaining the retrenchments in July, GovTech's chairman Chng Kai Fong said 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.

Changes to effect such a shift will take place during 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 other two phases are expected to cover the rest of GDT’s Forward Deployed Teams.

GovTech also clarified back in July 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.

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

The July retrenchment affected 93 staff, with GovTech retaining 102 officers in their roles and retraining 110 for new roles through apprenticeships.

In total, 131 GovTech staff have been let go so far across the two phases.