Starling Bank cuts 130 jobs in AI-focused restructuring

Starling Bank, a prominent London-based digital challenger bank, is cutting approximately 130 jobs, representing about 3% of its workforce of over 4,000. The company informed staff this week that the restructuring of its banking and technology operations is intended to simplify its organization, reduce duplication, and accelerate product delivery.

The job cuts coincide with a strategic push to integrate artificial intelligence more deeply into its operations and follow a second consecutive year of declining financial results. For the year ending in March, Starling reported a pretax profit of £217 million, down from £223 million the previous year. Total revenue fell to £887 million from £940 million. The bank attributed the declines to falling interest rates, which squeezed margins, and to significant investments in its software-as-a-service division, Engine.

Despite the cuts, Starling emphasized its continued growth in customer numbers, which reached 6.2 million platform accounts, and deposits, which rose to £12.7 billion. A company spokesperson stated that agility and the ability to reorganize rapidly are key competitive advantages. The bank noted it is continuing to hire...