GovTech's Layoffs Were Necessary to Keep Up With Rapid Tech Changes, Says Min. Jasmin Lau

The Government Technology Agency of Singapore (GovTech) said its recent retrenchment exercise was necessary to keep pace with rapid technological changes, after years of relying on natural attrition, retraining and targeted hiring proved insufficient to reshape its workforce.

Speaking in Parliament on 4 Aug, Senior Min. of State for Digital Development and Information Jasmin Lau said GovTech had invested heavily in redeployment and apprenticeship programmes but acknowledged there were limits to how quickly these efforts could transform the agency.

She said the workforce changes were part of GovTech's shift from a one-off project delivery model to a continuous product ownership model, requiring more software engineers, product managers, designers, cybersecurity experts and data specialists, while reducing the need for project and vendor management roles.

Lau also revealed that retrenched employees remain on GovTech's payroll during their notice period and are receiving career transition support.

Nearly 30 companies have since offered more than 300 technology-related vacancies, with many affected officers already applying or attending interviews.

She then stressed that the restructuring is specific to GovTech's transformation and is intended to ensure the agency can continue delivering secure, reliable and effective digital services for Singapore.

This comes after GovTech chairman Chng Kai Fong apologised to employees affected by the agency's retrenchment exercise. In a note to staff, Chng stressed that the restructuring was "not an AI-driven downsizing exercise", but part of Gov Tech's transition towards building and managing critical digital products in-house.

He added that delaying the transformation would leave key government systems ageing and widen the gap between citizens' needs and GovTech's ability to deliver digital services.

GovTech's restructuring comes amid a broader wave of workforce changes across the technology sector.

In June 2026, Lazada announced a retrenchment exercise as part of an organisational restructuring, while Meta also carried out another round of layoffs in 2026, with reports indicating that more than 100 roles in Singapore were affected.