July 31 (Reuters) - Fintech Chime is cutting 10% of its workforce, a spokesperson said on Friday, joining a growing list of companies using AI-driven efficiencies to streamline operations.
The AI boom has increasingly reshaped corporate America's workforce and hiring strategies as companies look to turn hefty technology investments into productivity gains, changing how work is organized.
"AI is changing what's possible but requires new skills," Chime's CEO and co-founder Chris Britt wrote in a memo to employees seen by Reuters.
"Smaller teams with fewer layers are moving faster than ever and getting more done," he said.
The layoffs will affect nearly 150 employees, a Chime spokesperson told Reuters. The company had about 1,500 employees at the end of last year.
Jack Dorsey's payments company Block said in February it would cut more than 4,000 jobs, nearly half its workforce, as part of an overhaul to embed AI across its operations.
Other financial firms have also trimmed jobs this year as they look to boost efficiency, including card giant Visa, which last week announced plans to cut 7% of its workforce, as well as Robinhood and Mastercard.
Chime is among the fintech firms that have disrupted the banking industry by offering digital services, intuitive platforms and lower fees, increasing competition for legacy lenders.
Britt added in the memo that the organizational changes would create a flatter structure, with smaller teams in some areas and new capabilities in others.
"As a public company, we must accelerate growth while continuing to demonstrate operating discipline to build an even stronger, more profitable business."
The company, which went public in June 2025, is set to report second-quarter results next week. Its shares have lost about 10% this year and were little changed in morning trading.
The news of the layoffs was first reported by Bloomberg News, earlier on Friday.
(Reporting by Manya Saini in Bengaluru; Editing by Devika Syamnath)
