GovTech completed the first phase of its workforce transformation on July 15, 2026, retrenching 93 staff as part of a planned two-year restructuring process[citation needed] [1, 2, 3]. The agency, which employs about 3,900 people, expects to affect between 7 and 9 percent of its roles over the next two years in a three-phase workforce overhaul [1, 2, 4, 3].
The first phase impacted 302 officers across GovTech headquarters and six public agency teams. Among those affected, 102 were retained in their current roles, 110 will be retrained as apprentices, and 93 were retrenched [1, 2, 3]. Most of the affected positions were in project delivery and vendor management teams embedded within other government agencies [2, 4, 5].
Retrenched staff are receiving severance packages including one month's salary per year of service (capped at 25 years), a three-month ex-gratia payment, six weeks' salary for notice and handover periods, and additional completion payments if asked to stay longer [1, 2, 3]. Support services have been put in place such as career guidance, job matching, and opportunities for redeployment within or outside the public sector [2, 3]. Gabriel Ng, general secretary of the Amalgamated Union of Singapore Blue-Collar Employees (AUSBE), said the union secured additional support measures after being notified early about the restructuring plan [3].
GovTech chairman Chng Kai Fong said the process is “not an AI-driven downsizing exercise,” noting the shift began years before the current AI wave [2]. Chng added, “GovTech is changing shape, not shrinking,” and emphasized the need for talent capable of defining problems, shaping architecture, making build-or-buy decisions, and improving critical services daily [2, 5].
The restructuring marks a strategic move from a one-off project delivery model toward continuous product ownership, focusing on building agile, cross-functional tech teams to rapidly meet evolving national digital needs [1, 2, 4, 6, 5].
By November 2026, GovTech plans to announce the scope of the next phase of restructuring as it progresses through the remaining two phases affecting up to 9 percent of roles in total [1, 2].
