Starling Bank cuts 130 jobs, boosts AI investment to reduce costs
Starling Bank is cutting 130 jobs, about 3% of its workforce, as part of a restructuring that increases spending on artificial intelligence to lower costs.
Starling Bank has announced it will cut 130 jobs, representing 3% of its workforce, as it shifts focus toward artificial intelligence (AI) to drive down expenses. The London-based digital-only bank, which employs over 4,000 people, said the restructuring is aimed at reducing duplicate roles and accelerating product delivery.
The bank attributed its competitive edge to its agility and ability to reorganize quickly. It is continuing to hire AI and tech engineers while streamlining its banking team structure.
The job cuts come amid financial pressures. Revenue for the year ending March dropped 6% to £887 million, while 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 has 6.2 million customers, mostly in the UK. Like many neo-banks, it has struggled to expand internationally and abandoned its bid for a European banking license in 2022.
The bank faced regulatory setbacks: in 2021, the Financial Conduct Authority (FCA) restricted its ability to open accounts for high-risk customers due to weak financial crime controls. In 2024, the FCA fined Starling £29 million for what it called "shockingly lax" controls that left the financial system vulnerable.
Despite these challenges, there has been speculation about an initial public offering. In January, CEO Raman Bhatia told the Sunday Times that while there are no firm plans, he could see the business becoming a public company in the near term.
