Israeli Digital Bank ONE ZERO Cuts 10% of Staff Due to AI Advancements
Translated & summarized from Channel 9 by baba
Israeli digital bank ONE ZERO is laying off about 10% of its employees, citing the rapid advancement of artificial intelligence. CEO Eyal Gafni stated that generative AI is changing work processes, necessitating a staff reduction. This move follows similar workforce adjustments at companies like LinkedIn and Truecaller, as AI technologies reshape the job market by automating tasks and reducing operational expenses.
The story in 5 lines · by baba
- ONE ZERO bank is reducing its workforce by approximately 10% due to AI advancements.
- CEO Eyal Gafni cited generative AI's impact on work processes as the reason for the layoffs.
- Affected employees have been notified and will receive support during the transition.
- This decision aligns with a broader trend of companies cutting staff amid AI development.
- Previous layoffs due to AI or restructuring occurred at LinkedIn and Truecaller.
Israel's digital bank ONE ZERO announced on Sunday, October 11, that it will lay off approximately 10% of its workforce. Employees affected by the cuts have been called for individual meetings, while others were informed they are not part of this wave of dismissals. In a letter to staff, CEO Eyal Gafni cited the rapid development of artificial intelligence technologies as the reason for the decision. He explained that generative AI tools are transforming how work processes, customer service, and product development are managed. Gafni highlighted that ONE ZERO's digital infrastructure, built on modern systems and automation, allows for swift adoption of new technologies. However, this necessitates a review of staffing levels to align with the company's evolving needs. The CEO thanked departing employees for their contributions and assured them of support during the transition period.
ONE ZERO joins a growing list of companies reducing staff amid AI's rise. In August, LinkedIn planned to close its R&D center, leading to significant layoffs. In May, call identification company Truecaller shut down its Israeli development center and dismissed its entire staff. The advancement of AI is increasingly impacting the labor market, with technologies that boost efficiency and cut costs simultaneously threatening traditional jobs.
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