GovTech Restructures Workforce, Retraining and Retrenchment Announced

Singapore, Singapore Jul 15, 2026 ALN: SINGAPORE – The Government Technology Agency (GovTech) has announced the retrenchment of 93 staff members as part of a restructuring plan that will affect 7% to 9% of its workforce over the next two years. This initiative aims to transition GovTech from managing vendor-delivered projects to independently running its own technology products. The move reflects a broader trend in public sector organizations worldwide to enhance in-house capabilities, particularly in the face of rapid technological advancements and changing national needs.

Chairman Chng Kai Fong communicated this shift in a note sent to the agency’s approximately 3,900 employees on July 15. He emphasized that the restructuring is necessary for GovTech to respond swiftly to national needs. The agency, which was established in 2016, has played a pivotal role in digitizing public services in Singapore, and this restructuring aims to further enhance its effectiveness and efficiency in delivering these services.

“This is not an AI-driven downsizing exercise. This shift began years before the current AI wave,” Chng clarified, adding that the agency expects to employ more people at the end of the transition than it does currently. “GovTech is changing shape, not shrinking.” This statement underscores the notion that while some roles may be eliminated, the agency is looking to evolve and grow by developing new capabilities that align with future technological demands.

In a statement released on the same day, GovTech noted that more than two-thirds of the officers identified in the first phase of the restructuring have either retained their current roles or will be retrained for new positions. Specifically, 102 employees were retained, while 110 were placed into apprenticeships to reskill. This emphasis on retraining reflects a commitment to workforce development, ensuring that employees can adapt to the new technological landscape and continue contributing to the agency's mission.

The restructuring process will unfold in three phases over the next two years. The first phase will impact six of GovTech’s forward-deployed teams, which are units embedded in other government agencies, along with one of its central functions. Staff working in project delivery and vendor management roles are among those affected. This strategic realignment is intended to streamline operations and enhance the agency's ability to deploy resources effectively in response to urgent national priorities.

Retrenched employees will receive a severance package that includes one month’s salary for every year of service, capped at 25 years, along with a three-month ex-gratia payment and salary and benefits during a six-week handover and notice period. Additional support will be provided, including career guidance to help match them with jobs in the public sector and beyond. This comprehensive support package aims to alleviate the impact of the restructuring on affected employees, reflecting a responsible approach to workforce management.

Chng mentioned that these terms were established in consultation with the Amalgamated Union of Statutory Board Employees (AUSBE), which represents GovTech’s workers. The union has been actively involved in supporting affected staff and negotiating a support package that exceeds the provisions in the collective agreement. This collaboration highlights the importance of labor relations in navigating organizational changes, ensuring that employee rights and welfare are prioritized during transitions.

Despite efforts to redeploy and convert staff whose roles have become obsolete, a small number of officers will transition out of GovTech. The agency has already redeployed and converted a substantial number of officers into new roles and will continue to do so as much as possible. This proactive approach to workforce management aims to minimize job losses while facilitating the necessary changes in operational strategy.

GovTech is also offering apprenticeships where staff will receive their full salary, along with structured retraining programs aimed at facilitating transitions into product ownership and related capabilities. The agency is standardizing some of its services, leading to the consolidation of roles tied to these services, with affected officers being redeployed wherever feasible. This focus on apprenticeships and reskilling is indicative of a broader recognition that the future of work will require continuous learning and adaptation to new technologies.

Chng explained the necessity for these changes, stating that critical systems increasingly demand in-house capabilities to enable rapid responses to national needs. He noted that modern technology development requires greater control and agility, especially as the world becomes more digital. This shift is part of a global trend where organizations are increasingly looking to develop in-house expertise to maintain competitiveness and responsiveness in a fast-evolving landscape.

“Left unchanged, our legacy systems become harder to secure, harder to change, and more vulnerable to failure,” he added. GovTech aims to build, operate, secure, and continuously improve its core systems, maintaining accountability for these services. This emphasis on accountability is crucial for the agency as it seeks to enhance public trust and ensure the reliability of its digital services.

As part of the restructuring, GovTech recognizes that not every officer will be able to make the transition. The agency is collaborating with the Public Service Division, the Skills and Workforce Development Agency, and AUSBE to provide support for affected staff, including priority redeployment within the public service and assistance in changing careers. This multi-agency collaboration is essential for ensuring that employees have access to the resources and support needed to navigate their career transitions successfully.

In a statement on July 15, AUSBE general secretary Gabriel Ng highlighted the union's proactive approach in working closely with GovTech to support affected staff and mitigate the impact of the restructuring exercise. This partnership between the union and the agency underscores the importance of stakeholder engagement in managing organizational change and ensuring that employee concerns are addressed.

Large public service retrenchment exercises are uncommon in Singapore, with previous instances typically involving the civil service’s Special Resignation Scheme (SRS), which allows civil servants whose jobs are no longer needed to leave with compensation. This context highlights the significance of GovTech's restructuring as a notable event within the broader landscape of public sector employment in Singapore.

Chng concluded by reiterating that while vendors will continue to be important partners, accountability for core systems now rests with GovTech itself, marking a significant shift in the agency's operational strategy. This change reflects a growing recognition of the need for public sector organizations to internalize critical capabilities and reduce reliance on external vendors, thereby enhancing their ability to respond to the needs of citizens effectively.