GXS Bank, backed by Grab and Singtel, has announced that it will be laying off 82 employees across the group. This update came from a message sent by Group Chief Executive Officer Pei-Si Lai, which was seen by CNA on December 3. According to the bank, the retrenchment exercise follows a “strategic business review” that has been ongoing for some time. The 82 roles make up about 10 per cent of the digital bank’s total workforce.
Why the Layoffs Are Happening
CEO Pei-Si Lai explained that GXS Bank is now entering a new phase of its operations. She said the bank is “transitioning from building the bank to running the bank,” and because of this shift, the kind of roles needed going forward will not be the same as before. She mentioned, “The roles that are essential as we move forward and focus on running the bank may be different from our build phase.”
Lai shared that the bank had already spent the last one and a half years trying to “reshape” itself. During this period, GXS only replaced roles they believed would be important for the group in the coming years. She also added that the bank had “regionalised its core capabilities,” including data, product and technology, to “improve collaboration” and help scale its product innovation across several markets.
However, despite these internal changes, Lai admitted that “the pace of organic reshaping has been slower than expected,” which led to the decision to carry out a formal retrenchment exercise.
Support for Affected Employees
GXS Bank has put together several support measures for those affected. The bank will offer severance payouts and goodwill payments, as well as extended medical coverage for a period of three months. In addition, employees will receive career transition assistance and counselling services to help them move forward.
The bank will also place affected staff on garden leave, which Lai said would give them “time and space” to begin their job search while still receiving their benefits during this period.
