GovTech Retrenches 93 Staff as Agency Shifts to In-House Product Model

The Government Technology Agency (GovTech) has retrenched 93 employees as part of a multi-phase restructuring effort intended to modernize its operations. The agency, which supports the technology needs of more than 50 government agencies, is transitioning from a model focused on managing projects delivered by vendors to one where it develops and manages products in-house.

GovTech chairman Chng Kai Fong stated that the move is designed to allow the agency to respond more quickly to national needs. This is not an AI-driven downsizing exercise. This shift began years before the current AI wave, Mr. Chng said in a note to the agency’s 3,900 employees on July 15.

Restructuring Scope and Future Outlook

The 93 retrenchments represent the first phase of a broader organizational change. Over the next two years, GovTech expects that 7 per cent to 9 per cent of its total workforce will be affected by the restructuring. Despite these cuts, Mr. Chng noted that the agency expects to employ more people at the end of the transition than it does currently, stating, GovTech is changing shape, not shrinking.

The restructuring process is divided into three phases. The first phase, which resulted in the 93 layoffs, impacted six forward-deployed teams—units embedded within other government agencies—and one central function. Mr. Chng, who also serves as the Permanent Secretary for Digital Development and Information, did not specify which teams or functions were impacted. Roles tied to project delivery and vendor management were among those affected as the agency consolidates services.

Restructuring Scope and Future Outlook — Photo: NTUC UPortal

Support for Affected Staff

GovTech reported that over two-thirds of the officers identified in the first phase were retained in their current roles or transitioned into new ones. Specifically, 102 staff members were retained, while 110 were placed into apprenticeships to undergo reskilling.

For those being retrenched, the agency, in consultation with the Amalgamated Union of Statutory Board Employees (AUSBE), developed a support package. This includes:

Support for Affected Staff — Photo: The Straits Times

One month’s salary for every year of service (capped at 25 years).
A three-month ex-gratia payment.
Salary and benefits through a six-week handover and notice period.
Career guidance and job matching support.

AUSBE General Secretary Gabriel Ng confirmed that the union negotiated additional measures beyond the collective agreement, including pro-rated performance bonuses and six months of paid union membership. Affected officers have also been offered access to career coaching and job-matching initiatives involving nearly 30 companies and over 300 technology-related vacancies.

Public Service Context

The Public Service Division (PSD) clarified on July 17 that the GovTech restructuring is not part of a broad-based exercise across the public service. According to the PSD, such restructuring is undertaken only when necessary to address fundamental changes in an agency’s operating environment, mission, or model.

The public service’s purpose is to serve Singapore and Singaporeans, the PSD said in a statement. To do this well, agencies must continue to transform and ensure that the public service workforce remains effective, responsive and ready for the future.

The PSD emphasized that the primary priority during any restructuring is to reskill and redeploy officers. Where redeployment within the public service is not feasible, affected officers may be offered the Special Resignation Scheme, which provides financial support for those whose roles are no longer required.

GovTech Retrenches Staff as Singapore Shifts to In-House Digital Teams

Transitioning to Product Ownership

GovTech’s shift toward a continuous product-ownership model is intended to deliver more secure and responsive digital services. The agency is offering structured retraining programs to help staff in project and vendor management roles transition into product ownership and related technical capabilities.

In his note to staff, Mr. Chng acknowledged the difficulty of the announcement and expressed his regret regarding the disruption caused to employees and their families. He emphasized that for the staff remaining at the agency, there is a responsibility to ensure the transformation is successful. To colleagues who are staying: we owe it to those leaving to make this transformation real, not another reorganisation on paper, he wrote.