GovTech layoffs necessary to maintain quality of digital services for Singaporeans, says Jasmin Lau

GovTech officers in their 40s formed the largest age group of affected employees, accounting for about four in 10.

SINGAPORE: Prior to its recent layoffs, the Government Technology Agency of Singapore (GovTech) had anticipated the need to reshape its workforce, but several years of natural attrition and targeted recruitment was "not enough" to meet this need, Senior Minister of State for Digital Development and Information Jasmin Lau said on Tuesday (Aug 4).

While the agency had invested heavily in pilots and apprenticeships to retrain or redeploy staff, there were limits to its pace and scale, said Ms Lau, who is also the acting minister for manpower.

"Meanwhile, technology is changing fast, and GovTech must keep up. Because if we fall behind, the quality of our digital products and services for our citizens will suffer," she said in parliament.

She was responding to eight Members of Parliament (MPs) who had filed questions on the decision, asking the government about the profile of the affected employees, whether alternatives to layoffs had been explored, and the government's considerations behind the move.

GovTech is a statutory board under the Ministry of Digital Development and Information (MDDI) and supports technology needs across Singapore's government.

In July, GovTech announced that it had cut 93 jobs in the first of three phases of workplace transformation expected to take place over two years.

The agency expects to let go of 7 to 9 per cent – or about 300 workers – of its roughly 3,900-strong pool of permanent and contract staff. The scope of the next phase is expected to be announced by November.

Ms Lau said the ministry was consulted on GovTech's workforce transformation plans, adding that this was a "necessary part" of GovTech's shift from a one-off project-delivery model to a continuous product-ownership model, with the aim to create and deliver better services for Singapore.

"GovTech's workforce will grow because of this shift, but its composition will also need to change," she said.

GovTech officers will need to take greater end-to-end responsibility for the government's digital products and platforms, while continuing to partner with vendors who have specialised expertise, said Ms Lau.

"Teams that own the products must not only design and build them but must also maintain and improve them continually, to provide more reliable, secure and responsive digital services for citizens."

The agency is therefore hiring more software engineers, product managers, designers, data specialists, cybersecurity experts and platform engineers, while needing fewer officers for project and vendor management, she said.

AFFECTED EMPLOYEES MOSTLY IN THEIR FORTIES

Giving a demographic breakdown of officers affected in the first phase, Ms Lau said workers in their 40s formed the largest age group of affected employees, accounting for 42 per cent of both the 93 retrenched officers and the 305 affected officers.

"This age group is therefore not over-represented among the exiting officers," said Ms Lau.

She later said that about 30 per cent of the affected workers were above the age of 50, in reply to a question from MP Patrick Tay (PAP-Pioneer).

She added that there was no significant difference in tenure between the retrenched workers – who have served for a median of 5.4 years – and those being retrained – who have a median tenure of six years.

Those retrained on apprenticeships receive full salary, structured training and on-the-job learning to develop capabilities required under GovTech's future operating model, she said.

One-third of the affected employees were team leaders, while the remainder were individual contributors.

"We recognise the disruption this causes to the affected officers and their families, and we will support them fully through this process," said Ms Lau.

GovTech previously stated that out of the total of 305 officers were affected in GovTech's first phase of transformation: 93 retrenched employees, 102 officers retained in current roles, and 110 retrained for new roles under apprenticeships.

Mr Tay also asked how GovTech's contract staff were affected by the workforce transformation.

Ms Lau said GovTech has contract workers across a range of functions, and those in project and vendor management roles are more likely to be affected by the transformation plans.

HELPING AFFECTED OFFICERS

Responding to Non-Constituency MP Andre Low, who asked how GovTech was transitioning the workers out, Ms Lau said that the 93 retrenched workers were still on GovTech's payroll.

They were being given time after the retrenchment notice to hand over their work and look for other opportunities, she said.

"Many of them are focusing very much on the handover of the work, and some even tell us that they will do that first before they look around for opportunities elsewhere."

She added that GovTech intends to monitor the workers' progress through job placement efforts to "make sure that they have a good landing".

Mr Low also asked whether the government had exhausted all potential public sector opportunities for the retrenched workers prior to the layoffs.

"Matching an officer to a role in other government agencies is not something GovTech can do unilaterally by just comparing a resume against a list of vacancies," replied Ms Lau.

Every hiring agency or team has its own recruitment process, including interviews and assessments for fit, which a worker must actively take part in for a match to happen, she said.

She said this was why GovTech chose to give the employees early and direct notice, so they would have time and support to explore their options.

The retrenched officers received the standard one month's notice and one month's salary for each year of service, capped at 25 years, under their collective agreement.

Additionally, they received a three-month ex-gratia payment, a pro-rated performance bonus, and six months of paid union membership for members of the Amalgamated Union of Statutory Board Employees.

Close to 30 companies have offered more than 300 technology-related job vacancies. Ms Lau said officers interested in these options are currently in the application or interview stages.

GovTech's transformation outcomes will be assessed through whether officers are supported on meaningful transition pathways, whether the agency strengthens capabilities required for its future operating model, and whether it delivers more secure, reliable and effective digital services, she added.

For the wider technology workforce across the public service, Ms Lau said mid-career professionals in project and vendor management have valuable experience that can transfer to product-oriented roles.

"However, these officers will still need to acquire relevant skills such as agile delivery, user-centred design, cybersecurity and knowledge of data and cloud technologies," she said.

She added that the government is committed to building a strong pipeline of technology talent such as through the Infocomm Media Authority's TechSkills Accelerator, GovTech's Digital Academy and the institutes of higher learning.

Public sector layoffs in Singapore are rare, with the last publicly reported retrenchments in the civil service dating back to the 2006 to 2010 period.