One Zero Bank Lays Off 10% of Staff, Citing AI and Competition

One Zero Bank announced on Sunday, October 11, that it is laying off 10% of its 350 employees. The bank attributes these cutbacks, which come after a period of improved profitability and reaching 200,000 customers, to the need for efficiency driven by artificial intelligence (AI) and anticipated competition. "As these capabilities (of AI) mature, they allow us to operate faster, simplify and improve processes, and provide better and more accessible service to customers," wrote the bank's CEO, Eyal Gafni, in a message to employees. He also noted the rapidly changing competitive landscape, with new players expected to enter the market and existing financial institutions expanding their offerings to compete more directly with banks. One Zero prefers to initiate these adjustments now from a position of progress and growth, rather than waiting for changes in technology, competition, or the market to force a reaction.

In its first-half 2026 financial reports, the bank showed a 33% increase in revenue to 66 million shekels. Expenses decreased by 10% to 149 million shekels, despite growth in customer numbers and activity volume. The bank's losses narrowed by 27% to 84 million shekels in the first half of 2026. One Zero estimates it will still end 2026 with a loss, but anticipates reaching a point by year-end where monthly revenues will exceed expenses. The bank expects to become profitable in 2027. This is not the bank's first round of layoffs; in September 2024, 23 employees were dismissed after a planned expansion into Italy was suspended due to the war.