Singapore GovTech Cuts 38 Staff in Second Layoff Round: Workforce Restructuring Raises Job-Security Concerns Despite Retraining Efforts — AsiaOne (October 22, 2026)
Article Updated: October 28, 2026 · Second of three planned phases
GovTech Singapore has retrenched another 38 officers, bringing the total to 131 since July. The agency says it is moving to product ownership and is prioritising retraining and redeployment.
This report covers the numbers, who was affected, the payouts and support on offer, the job-security debate and what is still unknown.
1. What GovTech announced
On Thursday, October 22, 2026, the Government Technology Agency of Singapore confirmed it would retrench 38 officers in the second phase of its workforce transformation. It said the affected roles were primarily structured around traditional project delivery, and that all affected staff were informed by the end of that day.
| Item | Detail (as reported) |
|---|---|
| Second-round layoffs | 38 officers |
| First round (July) | 93 officers |
| Total since July | 131 |
| Planned scale | 7% to 9% of the workforce over two years |
| Workforce size | About 3,900 permanent and contract staff |
| Scope | Staff deployed to 23 government agencies |
| Third and final round | Expected mid-2027 |
2. Three phases over two years
GovTech told staff about the three-phase plan at a town hall last month, according to CNA reports summarized by AsiaOne. The second phase is expected to wrap up by November, the union AUSBE said. Seven to nine per cent of about 3,900 staff works out to roughly 270 to 350 people, so 131 is well under half of the planned total.
3. Who was affected
According to The Business Times as cited by Human Resources Online, the second phase reviewed 250 officers. Of those, 38 are leaving, 106 will remain in their current roles and another 106 are eligible for conversion and apprenticeship pathways into new roles. GovTech said it will keep supporting officers in apprenticeships through assessment and transition.
4. Why GovTech says it is restructuring
The agency says it is shifting from traditional project and vendor management to continuous ownership of the digital products and services it builds and operates. Red Hot Singapore reports the cuts are meant to reduce reliance on vendors. When the first round was announced in July, GovTech said the exercise was not driven by artificial intelligence and was not a cost-cutting or downsizing move. GovTech will keep working with industry partners where specialised expertise is needed, according to HRO.
5. Support and payouts
GovTech said in July that retrenched staff would receive one month’s salary per year of service (capped at 25 years), a three-month ex-gratia payment, and salary and benefits through a six-week handover and notice period. AUSBE said it negotiated the ex-gratia payment and other terms, and that the package was agreed at the start of the exercise. For this round, GovTech says it is working with the Public Service Division, the Skills and Workforce Development Agency and AUSBE on career coaching, job matching and placement help.
6. Job-security concerns
Analysts quoted when the first round was announced described the move as a surprise because layoffs are rare in government agencies. Associate Professor Walter Theseira said it was not a signal that the public sector has too many people, but that technology functions need to pivot. OCBC chief economist Selena Ling noted that the global tech sector has seen restructuring, and the commentary stressed lifetime employability rather than lifetime employment.
Our analysis: the cuts target a type of role, project and vendor management, not a whole function. That fits a wider pattern in technology work, where employers want people who own products over time. The numbers so far show that most reviewed officers were retained or offered a route into new roles, but the third round means uncertainty continues until mid-2027.
7. What is still unknown
GovTech has not said how many people the third round will affect, and the 270 to 350 range is an estimate derived from the 7% to 9% target. Reports do not say how many of the 106 officers on conversion pathways will ultimately move into new roles. The agency’s own statement was not read directly; this article relies on news reports of it.
8. Related reading on WB Scheme News
9. Frequently asked questions
1. How many GovTech staff were laid off in the second round?
38, announced on October 22, 2026. That brings the total to 131 since the first round of 93 in July.
2. Why is GovTech restructuring?
GovTech says it is shifting from project and vendor management to owning the digital products it builds and runs, which reduces reliance on vendors. In July it said the change was not driven by AI or cost-cutting.
3. How many more layoffs are expected?
A third and final round is expected in mid-2027. GovTech expects 7% to 9% of its roughly 3,900 staff, about 270 to 350 people, to be affected over two years.
4. What severance do affected staff get?
As stated in July: one month’s salary per year of service (capped at 25 years), a three-month ex-gratia payment, and pay and benefits through a six-week handover and notice period.
5. Is this a sign of wider public-sector layoffs in Singapore?
Not necessarily. Analysts quoted when the first round was announced said public-sector layoffs are rare, and one argued it signals a pivot in technology functions, not a bloated public sector.
6. What support is available?
GovTech says it is working with the Public Service Division, the Skills and Workforce Development Agency and the union AUSBE on career coaching, job matching and placement help, including in the public service and private sector.
10. Conclusion
GovTech’s second round is small in number but significant because it is a rare public-sector retrenchment and part of a three-step plan. The agency stresses retraining and redeployment, while workers and analysts watch whether the mid-2027 round and the conversion pathways deliver on that promise.
11. Sources and references
- AsiaOne — GovTech retrenches 38 employees in second phase of layoffs, October 22, 2026. Headline-date source; GovTech’s statement on the second phase and support partners.
Read the AsiaOne report ↗ - Human Resources Online — 38 employees retrenched in GovTech’s second round of layoffs (Priya Sunil), October 23, 2026. Figures on the 250 officers reviewed, the 131 total and AUSBE’s timeline.
Read the HRO report ↗ - Vulcan Post — GovTech lays off 38 employees in second wave of retrenchments. Three-round plan, 7% to 9% target and July severance terms.
Read the Vulcan Post report ↗ - Red Hot Singapore — GovTech retrenches 38 employees in second wave of layoffs. Vendor-reliance rationale and support partners.
Read the Red Hot Singapore report ↗ - People Matters — GovTech Singapore lays off 38 employees in second phase. Mid-2027 third round and the 23-agency scope.
Read the People Matters report ↗ - People Matters — GovTech layoffs reflect changing tech skills as Singapore’s digital workforce evolves. Analyst views from Ives Tay, Walter Theseira and Selena Ling (first-round coverage).
Read the analyst report ↗ - NTUC — GovTech to cut 93 roles; AUSBE provides support for affected officers. Union role and the negotiated ex-gratia payment in the first round.
Read the NTUC release ↗ - AsiaOne — GovTech shake-up to affect up to 9% of workforce (first round). GovTech’s July statement that the exercise is not driven by AI or cost-cutting.
Read the first-round report ↗
