Key facts
- Starling Bank plans to cut approximately 130 jobs.
- The restructuring aims to simplify operations and reduce duplication.
- AI will be integrated to enhance efficiency and product delivery.
- The bank's profit fell 3% to £217m in the last financial year.
- Revenue decreased by 5.6% to £887m, impacted by lower interest income.
Starling Bank, a prominent UK fintech company, is set to eliminate approximately 130 roles as part of a strategic initiative to streamline operations and enhance efficiency through the integration of artificial intelligence. The London-based firm informed its staff this week about a restructuring of its banking and technology divisions, aiming to reduce duplicated functions and accelerate the pace of new product launches.
In a statement, the bank explained that the changes are designed to simplify its operational structure, reduce instances of duplication, and drive faster product delivery. Starling emphasized that its agility and capacity for rapid testing, launching, learning, and reorganizing are crucial components of its competitive advantage.
The job cuts come in the wake of a challenging financial year for Starling, which saw its profit slide by 3% to £217 million. Revenue also experienced a decline of 5.6%, falling to £887 million. The bank attributed these downturns primarily to the Bank of England's reduced base rate, which led to a £52.5 million decrease in interest income, totaling £759.2 million. An investment of £20 million into its software-as-a-service arm, Engine, was also cited as a factor contributing to a short-term dampening of profit, although Engine itself achieved a significant 24.5% revenue surge, reaching £70 million and positioning the neobank for a projected £100 million in revenue.
Alongside operational changes, Starling is also undergoing a reshuffle at its senior leadership level. Colin Bell, who has been a non-executive director since November 2025, was appointed chairman in June, succeeding David Sproul. This transition follows the departure of Marcus Traill, who is linked to the bank's largest shareholder, billionaire Harald McPike, and fund manager Richard Watts. Tracy Clarke, who led the search for a new chairman, is also expected to leave. McPike, reportedly controlling a third of the company's shares, has previously expressed differing views on listing destinations, with a London IPO now seemingly less of a priority.