One Zero Bank Cuts 7% of Staff Amid AI Integration

The digital bank One Zero announced on Sunday that it is laying off approximately 7% of its workforce and halting planned hiring. This move is expected to reduce the bank's planned staffing by about 10% and is attributed to the accelerated integration of artificial intelligence tools that can perform tasks previously requiring more personnel.

Around 25 employees, constituting roughly 7% of the workforce, received termination notices. In a message to staff, CEO Eyal Gafni described the decision as difficult, acknowledging the contributions of the departing employees. Gafni explained that advancements in generative AI are transforming how organizations operate, develop products, and provide services. He highlighted that One Zero, built on modern infrastructure, data, and automation, is well-positioned to adopt these new tools rapidly, citing the bank's AI system, Ella, and existing automation tools.

The layoffs come after a relatively strong first half of the year for the bank. In the first half of 2026, One Zero's revenues grew by 33% to NIS 66 million, while expenses decreased by 10% to NIS 149 million, resulting in a 27% reduction in losses to NIS 84 million. The bank attributed some of the expense reduction to technological efficiencies, increased AI usage, and reduced outsourcing.

One Zero aims to achieve monthly profitability by the end of the current year and annual profitability in 2027. However, the workforce reduction alone may not be sufficient to meet this goal. The bank will need to continue increasing its revenues, particularly by expanding its credit portfolio, in an increasingly competitive digital banking market.