Starling Bank to cut 130 jobs and increase AI spending

Starling Bank will cut 130 positions, or 3% of its workforce, as it restructures banking and technology operations. The London-based digital bank said the changes are intended to reduce duplicate roles and increase spending on artificial intelligence. It stated that its competitive position stems from its ability to reorganize quickly.

Restructuring details "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 said.

Consultation with affected staff has begun. The bank reported revenue of £887 million for the year ended in March, down 6%. Pre-tax profit fell 3% to £217 million, partly due to spending on its digital banking software, Engine.

Background Starling was founded in 2014.

It is one of several online-only banks that emerged in the mid-2010s. The bank abandoned plans for a European banking licence in 2022 after earlier regulatory restrictions in 2021 and a £29 million fine in 2024 for weak financial crime controls. Its chief executive said in January that the bank could become a listed company in the near term, though no firm plans exist.