The Government Technology Agency of Singapore (GovTech) has laid off 38 employees as part of its second round of workforce reductions aimed at restructuring the agency to reduce reliance on external vendors and increase internal ownership of its digital products. The announcement was made on October 22, with the affected positions primarily linked to traditional project delivery roles.
This latest retrenchment follows the first round in July, when 93 employees out of the agency’s 3,900-strong workforce were released. GovTech has indicated that it expects between 7% and 9% of its total staff to be impacted through three rounds of layoffs over the next two years. The third round has yet to occur.
Despite the layoffs, GovTech emphasized efforts to retain, retrain, and redeploy officers wherever feasible. As part of this workforce review, 106 employees will continue in their current roles, while another 106 are eligible for apprenticeship and conversion pathways to transition into new positions within the agency. Those undergoing apprenticeship programs will receive ongoing support throughout the transition.
GovTech outlined its collaboration with the Public Service Division, the Skills and Workforce Development Agency, and the Amalgamated Union of Statutory Board Employees to provide comprehensive career coaching, job matching, and placement assistance to affected employees. The agency also confirmed that retrenched staff would receive compensation packages that include one month’s salary per year of service (capped at 25 years), a three-month ex-gratia payment, and continued salary and benefits during a six-week handover and notice period.
The restructuring stems from GovTech’s strategic shift to build greater in-house capabilities to manage critical government digital infrastructure. According to GovTech chairman Chng Kai Fong, rapidly evolving technological demands require increased internal control and agility to maintain, secure, and improve core systems. He noted that reliance on vendors for core digital services such as Singpass, Parents Gateway, and CDC vouchers is no longer sustainable, as these platforms require continuous development and operational oversight.
“Legacy systems become harder to secure, harder to change and more vulnerable to failure if left unchanged,” Chng said, highlighting the necessity of retaining staff who can define problems, shape system architecture, assess build-or-buy options, and maintain accountability for critical services.
Looking ahead, GovTech plans to expand its workforce with greater demand for software engineers, product managers, designers, data specialists, and cybersecurity professionals. As of October 22, the agency had approximately 270 vacancies posted on the government’s civil service jobs portal, Careers@Gov, reflecting its focus on hiring talent with skills aligned to its renewed organizational objectives.