Starling Bank has announced it will cut 130 jobs, representing 3% of its workforce, as part of a restructuring aimed at reducing duplicate roles and increasing investment in artificial intelligence to lower costs. The digital-only bank, headquartered in London, employs more than 4,000 people.
Restructuring Details
The bank said the restructuring is necessary to simplify operations and drive product delivery at pace. In a statement, Starling noted: “While we are continuing to hire tech and AI engineers, we recently told colleagues that we are changing parts of our banking team structure to simplify how we operate, reduce instances of duplication, and drive further product delivery at pace.” The bank added that it has begun a period of consultation with employees whose roles may be affected.
Financial Performance
The job cuts come at a critical time for Starling, which reported a 6% drop in revenue for the year ended in March, to £887m. Pre-tax profit also fell 3% to £217m, partly due to investments in its digital banking software, Engine. The bank attributed the decline to strategic spending on technology and AI.
Background and Challenges
Founded in 2014 by former Royal Bank of Scotland executive Anne Boden, Starling was part of a wave of neo-banks—alongside Revolut and Monzo—that aimed to disrupt traditional banking in the UK. It now serves 6.2 million customers, mostly in the UK. However, like its peers, Starling has faced challenges expanding abroad, abandoning a bid for a European banking licence in 2022.
Growth was also hampered in 2021 when the UK Financial Conduct Authority (FCA) imposed restrictions due to poor financial crime controls, preventing Starling from opening new accounts for high-risk customers. In 2024, the FCA fined the bank £29m, citing “shockingly lax” controls that left the financial system vulnerable to criminals and sanctioned individuals.
Future Prospects
Despite these setbacks, speculation persists about a potential stock market listing. In January, Starling’s chief executive, Raman Bhatia, told the Sunday Times that while there are no “firm plans,” he could “see this business as a plc … in a near-term window.”
