A representative for Fintech Chime announced on Friday that the company is reducing 10% of its workforce, joining an increasing number of businesses that are streamlining operations through AI-driven efficiencies.
Corporate America's workforce and employment practices have been significantly altered by the AI boom as businesses seek to convert large technological expenditures into increased productivity, which has altered the structure of work, according to a report by Reuters.
In an email to staff members seen by Reuters, Chris Britt, CEO and co-founder of Chime, wrote, "AI is changing what's possible but requires new skills". "Smaller teams with fewer layers are moving faster than ever and getting more done," he said.
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Nearly 150 workers will be impacted by the layoffs, a Chime representative told Reuters. At the end of the previous year, the company employed roughly 1,500 people.
As part of an overhaul to integrate AI throughout its operations, Jack Dorsey's payments company Block said in February that it will eliminate around 4,000 jobs, or roughly half of its workforce.
In an effort to increase efficiency, other financial companies have also reduced employment this year. Visa, the largest credit card company, revealed last week that it would be laying off 7% of its workers, along with Robinhood and Mastercard.
Chime is one of the fintech companies that have upended the banking sector by providing digital services, user-friendly platforms, and reduced fees, making conventional lenders more competitive.
The organisational changes would result in a flatter structure with smaller teams in certain areas and new capabilities in others, according to Britt's memo.
"As a public company, we must accelerate growth while continuing to demonstrate operating discipline to build an even stronger, more profitable business."
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Next week, the company, which went public in June 2025, will release its second-quarter earnings. Its shares saw minimal movement in morning trading and have lost roughly 10% this year.
Bloomberg News was the first to report on the layoffs earlier on Friday.
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