Mizrahi Tefahot Bank Cuts Dozens of Matrix Employees as AI Tools Replace Manual Work

About two years ago, Mizrahi Tefahot Bank selected the IT company Matrix for its "Digital Acceleration" project, aimed at digitizing many of the bank's assets, including developing mobile apps and transferring banking operations online. Matrix initially hired around 150 employees for this project. However, it has now been revealed that approximately 40 of these employees will be reassigned to other projects within Matrix, and some will be laid off. This change follows the introduction of AI tools by Matrix and adjustments to the project's scope agreed upon between the bank and the company.

According to reports, a conversation took place between Mizrahi Tefahot and Matrix after the company failed to meet the project timeline, resulting in a decision to alter the work format. Matrix is implementing AI technologies that reduce manual tasks, such as virtual service agents, intelligent form processing, and cybersecurity threat analysis systems. This trend is growing among Israeli banks, with companies like the Israeli AI firm Wonderfull providing automated service agent management systems to banks including Discount Bank and Bank Hapoalim.

Mizrahi Tefahot stated that the bank is undergoing a digital upgrade relying on external suppliers and that decisions about team sizes and staffing are made by the suppliers, not the bank itself. Matrix confirmed it regularly integrates AI technologies across projects and used AI tools as part of its professional toolkit in this project. This shift reflects a broader move in the banking sector toward AI-driven automation, impacting workforce composition and operational methods.