GovTech retrenches 38 more staff as workforce overhaul continues

Singapore's Government Technology Agency (GovTech) has retrenched another 38 employees as it continues a two-year workforce transformation aimed at building stronger in-house technology capabilities and reducing reliance on external vendors.

The latest round brings the total number of employees retrenched to 131, following the departure of 93 employees in July.

In a media reply on 22 October, GovTech said the 38 affected positions were primarily structured around traditional project delivery, according to The Straits Times.

The agency's workforce review also covered other officers, with 106 remaining in their current roles and another 106 eligible for conversion and apprenticeship pathways to take on new roles. GovTech reportedly said officers undertaking apprenticeships would receive support throughout the transition.

MARKETING-INTERACTIVE has reached out to GovTech for a statement. 

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The exercise forms part of a broader shift towards having teams take greater ownership of government digital products, from designing and building systems to operating, securing and improving them over time.

GovTech has said the transformation will change the skills its workforce needs, with greater emphasis on capabilities such as software engineering, product management, design, cybersecurity and data. It has also maintained that the agency expects to employ more people at the end of the exercise, despite the retrenchments.

The restructuring is being carried out in three phases over two years, with between 7% and 9% of GovTech's workforce expected to be affected.

The agency will continue working with the Public Service Division, the Skills and Workforce Development Agency, and the Amalgamated Union of Statutory Board Employees to provide career coaching, job matching and placement assistance.

A shift towards in-house technology ownership

When GovTech announced the first phase of its restructuring in July, chairman Chng Kai Fong said critical government digital systems had become increasingly difficult to secure and update under the existing model.

He said the agency needed to take greater accountability for its core systems, including services such as Singpass, Parents Gateway and CDC vouchers, while continuing to work with external vendors as partners.

The workforce changes were also addressed in parliament in August, when senior minister of state for digital development and information Jasmin Lau said GovTech had spent several years using natural attrition, targeted recruitment and internal retraining to reshape its workforce. However, these measures were no longer sufficient to keep pace with technological change.

Lau also said close to 30 companies had offered more than 300 technology-related vacancies to support affected employees. Those retrenched in July remained on GovTech's payroll during their notice period while completing handovers and pursuing new opportunities.

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