GXS cuts about 10% of workforce in rightsizing exercise

[SINGAPORE] Digital bank GXS is cutting 82 jobs or about 10 per cent of its workforce across the group.

This exercise is part of the group’s transition from the early growth stages of building a bank to running the operations, said GXS group chief executive Lai Pei-Si in a note to the company.

“The roles that are essential as we move forward and focus on running the bank may be different from our build phase,” said Lai.

These cuts were done after a strategic review to identify roles critical for the next phase was carried out. The review was undertaken across subsidiaries GXS Bank in Singapore, GX Bank in Malaysia and its tech centre in India.

GXS had tried to allow attrition to streamline its operations, and only filled roles deemed essential for the years ahead.

“However, the pace of organic reshaping has been slower than expected,” noted Lai.

The roles that have been made redundant were chosen based on the strategic review, and not on an individual’s performance, she added.

GXS will provide extended medical coverage for three months, career transition support and counselling services. Severance and goodwill payments as well as gardening leave to find a new job will also be extended, subject to prevailing market standards.

This move comes after GXS reported net interest income growth of S$30.2 million for FY2024, from S$15 million in FY2023. Losses widened to S$214.3 million from S$208.2 million.