Singapore job cuts hit 12 sectors as 10,000+ roles vanish in 2024

SINGAPORE, 23 SEPTEMBER 2026 —

Singapore’s AI-Driven Job Cuts: 12 Sectors Lose Over 10,000 Roles as Tech and Services Shed Workers Amid Economic Contradictions

The contradiction shows Singapore’s economic duality: a record-high GDP expansion—outpacing many developing nations—coexists with accelerating job losses in traditionally stable sectors, raising concerns over wage stagnation and workforce displacement. The Food & Beverage (F&B) sector, long struggling with inflation and rising rents, has erased all employment gains since 2023, reverting to 2022 pandemic-era levels—a collapse that disproportionately affects foreign workers.

Meanwhile, the IT sector, despite advertising nearly 4,000 vacancies, has cut 6,200 jobs since late 2024, with 1,700 lost in 2026 alone, signaling AI’s disruptive impact on even high-paying roles.

The professional services sector—encompassing legal, accounting, management, and insurance—has also felt the strain, losing 700 jobs in the first half of 2026, part of a 2,200-job decline over 18 months. While smaller in scale than IT’s hemorrhaging, the trend reflects broader anxieties: well-paying, white-collar jobs—once seen as secure—are now vulnerable to automation, with firms prioritizing AI investments over headcounts.

The MOM data does not specify whether the IT vacancies stem from skill mismatches in an AI-driven economy or "ghost postings"—jobs listed but never filled—but the disparity between demand signals and employment trends suggests deeper structural issues.

The F&B sector’s crisis is particularly acute, with hundreds of restaurant closures since 2024, exacerbated by predatory competition from China and customer reluctance to absorb higher costs. Employment in the sector has flatlined for two years, only to plummet in 2026, wiping out three years of recovery post-pandemic. While the majority of layoffs likely involve foreign workers, Singaporean jobseekers now face a shrinking pool of dining options, further tightening an already competitive labour market.

The IT sector’s paradox—simultaneously advertising jobs while slashing employment—highlights the AI revolution’s uneven impact. Companies are reallocating budgets from talent acquisition to AI tools, a shift that has accelerated job cuts at an unprecedented rate. The 6,200 IT jobs lost since late 2024 include roles in software development, cybersecurity, and data analysis—areas previously insulated from automation.

Industry observers suggest the vacancies may reflect either a skills gap in AI-adjacent roles or a strategic overposting to maintain talent pipelines while reducing actual hires.

For Singaporean workers, the implications are twofold: high-skilled professionals in IT and professional services are seeing wage pressures despite strong economic growth, while lower-wage workers in F&B and retail face persistent job insecurity. The MOM data does not break down citizenship status in layoffs, but historical trends suggest foreign workers bear the brunt—particularly in sectors like F&B, where work permit renewals may be delayed or denied amid shrinking headcounts.

As Singapore positions itself as a global AI hub, the job market’s contradictions raise questions about inclusive growth. While the economy thrives on tech-driven productivity, the human cost—visible in double-digit job losses across 12 sectors—challenges the narrative of a seamless transition. With no immediate policy responses announced by the government, businesses and workers alike are left navigating an unprecedented labour landscape, where AI’s promise of efficiency clashes with the reality of workforce displacement.

The next MOM report, due in December 2026, may offer further clarity on whether these trends stabilize, worsen, or force a rethink of Singapore’s economic strategy.

Related: Ministry of Manpower (MOM) · Singapore