Chime, a leading fintech company, announced plans to reduce its workforce by approximately 10 percent as part of a broader effort to streamline operations through the adoption of artificial intelligence technologies. The cuts, expected to impact around 150 employees, were confirmed by a company representative on Friday.

At the end of last year, Chime employed roughly 1,500 people. The decision to reduce headcount reflects the evolving role of AI in transforming business processes and operational efficiency within the financial technology sector. In a memo to staff, Chief Executive Officer Chris Britt emphasized that advancements in AI are reshaping the skills required and enabling smaller, more agile teams to accomplish more with fewer hierarchical layers.

“AI is changing what’s possible but requires new skills,” Britt wrote, underscoring that a leaner organizational structure could accelerate workflows and enhance productivity. The changes are intended to establish a flatter company hierarchy, which Chime leadership believes will better position the firm for future growth and innovation.

Chime has been among the prominent fintech companies challenging traditional banking institutions by offering digital-first services, user-friendly platforms, and lower fees. These innovations have intensified competition within the banking industry, compelling both new entrants and legacy players to adapt.

The workforce reduction at Chime comes amid a broader trend of technology companies leveraging AI to optimize operations, a shift that has prompted similar layoffs and restructuring across the sector. While the move aims to align the company with emerging technological capabilities, it also reflects the challenges fintech firms face in balancing rapid growth with operational efficiency in a highly competitive environment.