Starling Bank has announced plans to cut 130 jobs, representing 3% of its workforce, as part of a restructuring aimed at reducing duplicate roles and increasing investment in artificial intelligence. The digital-only bank, headquartered in London, employs over 4,000 people.
Restructuring to Enhance Efficiency
The fintech said the changes are necessary to maintain its competitive edge over traditional banks. In a statement, the bank emphasised its “agility” and “ability to rest, launch, learn and reorganise at pace.” It noted that while it continues to hire tech and AI engineers, it is altering parts of its banking team structure to simplify operations and reduce duplication.
“We have begun a period of consultation with colleagues whose roles may be affected by these changes,” the bank said.
Financial Performance and Challenges
The job cuts come at a critical time for Starling, which reported a 6% drop in revenue to £887 million for the year ending March. Pre-tax profit fell 3% to £217 million, partly due to investments in its digital banking software, Engine.
Founded in 2014 by former Royal Bank of Scotland executive Anne Boden, Starling was part of a trio of UK neo-banks—alongside Revolut and Monzo—that sought to disrupt traditional banking. It now serves 6.2 million customers, predominantly in the UK.
Regulatory and Expansion Setbacks
Like some peers, Starling has faced challenges expanding abroad. In 2022, it abandoned a bid for a European banking licence. Growth was also hampered in 2021 when the UK Financial Conduct Authority (FCA) imposed restrictions due to poor financial crime controls, preventing the bank from opening accounts for high-risk customers.
In 2024, the FCA fined Starling £29 million, citing “shockingly lax” controls that “left the financial system wide open to criminals and those subject to sanctions.”
Future Prospects
Despite these setbacks, speculation persists about a potential stock market listing. In January, CEO 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.”
