GXS, a digital bank, has made a strategic decision to reduce its workforce by approximately 10%, impacting 82 employees across its global operations. This move is a pivotal step in the company's evolution, transitioning from the initial stages of building a robust banking infrastructure to the operational phase. Group CEO Lai Pei-Si emphasized that the roles essential for the future of the bank may differ from those required during the construction phase.
The decision was made after a comprehensive strategic review, evaluating the critical functions needed for the upcoming phase. This review was conducted across subsidiaries, including GXS Bank in Singapore, GX Bank in Malaysia, and the tech center in India. GXS initially aimed to streamline operations through natural attrition, filling only essential roles for the future. However, the process of organic reshaping has been slower than anticipated.
The redundant roles were identified based on the strategic review, not on individual performance. To support affected employees, GXS will provide extended medical coverage for three months, career transition assistance, and counseling services. Severance and goodwill payments, as well as gardening leave, will also be offered, adhering to market standards. This restructuring follows GXS's financial report for FY2024, which showed a net interest income growth of S$30.2 million, up from S$15 million in FY2023, despite widening losses to S$214.3 million from S$208.2 million.
This strategic adjustment highlights GXS's commitment to adapting to the evolving banking landscape, ensuring the company's long-term sustainability and success in a rapidly changing market.
