The recent retrenchment of 93 officers at the Government Technology Agency of Singapore (GovTech) is an isolated agency-specific move and does not signal a broad-based restructuring exercise across the public service, the Public Service Division (PSD) confirmed on July 17.
According to a PSD spokesperson, GovTech’s restructuring reflects the agency’s specific operating needs as it adjusts to fundamental shifts in the technology sector, including rapid advancements and changing methods for delivering digital products. The PSD emphasized that significant restructuring within the public service is undertaken only when necessary in response to changes in an agency’s mission, operating environment, or business model.
Transition to a Product-Ownership Model
The workforce changes are part of a strategic shift at GovTech, which aims to transition from a one-off project-delivery model
to a continuous product-ownership model.
GovTech Chairman Chng Kai Fong, who is also the Permanent Secretary for Digital Development and Information, stated that this evolution is intended to allow the agency to respond more quickly to national needs.
In a note sent to the agency’s approximately 3,900 staff on July 15, Mr. Chng clarified that the move is not an AI-driven downsizing exercise, noting that the shift began years before the current wave of AI technology. He emphasized that the agency is changing shape, not shrinking,
and expects to employ more people at the end of the two-year transition than it does today.
Phased Restructuring and Workforce Impact
The restructuring process is scheduled to occur in three phases over the next two years. In the first phase, which resulted in the 93 layoffs, GovTech identified roles in six forward-deployed teams and one central function as those to be affected.
The agency reported that over two-thirds of the officers identified in this initial phase were retained. Specifically, 102 staff members were kept in their current roles, while 110 were placed into apprenticeships to undergo reskilling. The 93 retrenched individuals represent the remainder of the group. GovTech anticipates that 7% to 9% of its total workforce will be affected by the restructuring over the full two-year period.
Support for Affected Officers
The PSD stated that the first priority during any restructuring is to reskill and redeploy officers, either within their own agency or elsewhere in the public service. Where redeployment is not feasible, affected officers may be offered the Special Resignation Scheme (SRS), which provides financial support for those whose roles are no longer required.
GovTech has provided a comprehensive transition package for those leaving the agency. This includes:
- One month’s salary for every year of service, capped at 25 years.
- A three-month ex-gratia payment.
- Salary and benefits through a six-week handover and notice period.
- Personalized career guidance and job-matching support.
These terms were decided in consultation with the Amalgamated Union of Statutory Board Employees (AUSBE). Gabriel Ng, general secretary of AUSBE, noted that the union worked closely with GovTech to identify alternatives to retrenchment and secured additional support measures beyond those stipulated in the collective agreement.
Context of Public Service Transformations
Public service agencies conduct ongoing reviews of their organizational structures and workforce requirements to meet evolving priorities. While workforce changes are generally managed through natural attrition, job redesign, and redeployment, the PSD noted that when significant departures occur, the SRS serves as a mechanism to assist public officers whose roles are no longer needed. The PSD concluded that the public service remains committed to supporting officers through periods of change, ensuring the workforce remains effective and responsive to the needs of Singaporeans.