Starling Bank to cut about 130 roles as it leans on AI #

British challenger bank Starling is preparing to eliminate roughly 130 jobs as it restructures its banking and technology teams and leans more heavily on artificial intelligence, according to reporting by City AM.

The London-based fintech told employees this week that it is reorganising parts of its operation to run more efficiently. According to City AM, Starling said the changes are intended to simplify how it works, cut down on overlapping roles, and speed up the delivery of new products. The bank described the move as a way to remove “duplicate” roles and clear the path for a set of upcoming projects.

In a statement cited by the outlet, Starling pointed to its adaptability as a core strength. The company said its ability to test, launch, learn and reorganise quickly is a key advantage over older, established lenders. It added that it is continuing to recruit technology and AI engineers even as it reshapes other parts of the business.

The restructuring, first reported by the Financial Times, follows a softer financial year for the bank. City AM reported that pre-tax profit slipped 3% to £217m, while revenue fell 5.6% to £887m. The decline was largely attributed to the Bank of England’s falling base rate, which dropped by an average of 91 basis points over the period and pushed interest income down by £52.5m to £759.2m.

The bank also noted that a £20m investment into Engine, its software-as-a-service arm that sells its banking technology to other institutions, weighed on short-term results, according to City AM’s account.

Starling employs more than 4,000 people, so the planned reductions would affect roughly 3% of its workforce. The bank has described the cuts as part of a broader efficiency and automation strategy rather than a response to financial distress, and it says it will keep investing in engineering talent as it expands its AI capabilities.

Source: City AM