One Zero Bank, Israel's digital banking venture, is preparing to lay off approximately 25 employees, about 7% of its roughly 350-person workforce, even as the institution reports improving financial results and business growth. The bank will also leave about 10 additional positions unfilled, pushing total staffing to roughly 10% below its original hiring plan. Notifications went out to affected employees on Sunday morning.
The timing sets this round apart from previous layoffs. Digital banks typically cut staff during periods of financial strain, but One Zero is trimming its workforce while revenue climbs and losses narrow. The bank points to expanding automation and artificial intelligence tools as the driving force, arguing that technology now allows it to grow without adding headcount or cost. For customers navigating an increasingly digital financial landscape, the episode is also a reminder of how central cybersecurity and data protection have become to online banking; many users now pair their banking apps with tools like a reputable VPN provider to add an extra layer of protection when accessing financial accounts over public or unsecured networks. a reputable VPN provider
A Pattern of Recurring Cuts
This marks the third layoff round at One Zero since early 2024. More than 30 employees were let go that year, followed by another 23 in September, bringing total 2024 departures above 50. CEO Eyal Gafni described the latest decision as difficult, writing to staff that those being let go "built ONE ZERO alongside us, invested in it, and played a significant role in our journey and our successes." The cuts are not concentrated in any single department; the bank says adjustments are happening "wherever technology helps us accelerate processes."
Automation Without Direct Replacement Claims
One Zero has stopped short of saying artificial intelligence is directly replacing the roles being eliminated. Instead, the bank frames expanded automation and generative AI as tools that let it operate with a leaner structure overall. Gafni described a shift from an establishment phase to one requiring substantial growth without a matching rise in operating costs, saying the bank must stay "fast, agile, and efficient" to expand without growing its workforce or cost base. This distinction matters: it positions the layoffs as a structural efficiency strategy rather than a one-to-one substitution of human workers with machines, though the practical effect for departing employees is the same.
Financial Picture Improving
The numbers support the bank's growth narrative. Payroll expenses fell 8.8% in 2025 to NIS 120 million, down from NIS 131.7 million the previous year, which the bank attributed to tightening budgetary discipline. In the first half of 2026, revenue rose 33% to NIS 66 million while operating expenses dropped 10% to NIS 149 million, and the net loss narrowed 27% to NIS 84 million. One Zero's customer base has surpassed 200,000, and annual losses have steadily shrunk, from NIS 357 million in 2023 to NIS 268 million in 2024 and NIS 214 million in 2025. The bank expects profitability in 2027, with Gafni suggesting as early as August that a first profitable month was within reach.