UK fintech Starling to axe 130 roles in AI-powered simplification drive
Starling is gearing up to cut some 130 roles in a bid to streamline its operations following a fall in profit over the last year.
The London-based fintech told staff this week it would restructure its banking and tech operations as it leveraged AI across operations ahead of an influx of new projects.
It said the job cuts would help to eliminate “duplicate” roles and allow new product launches to move faster.
“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 in a statement.
It added “agility” and its “ability to test, launch, learn and reorganise” was a key factor of its competitive advantage.
The shake-up – first reported by the Financial Times – follows its profit sliding three per cent to £217m in its latest financial year.
This came as revenue slipped 5.6 per cent to £887m, with the Bank of England’s declining base rate cited as the primary headwind. Rates dropped by an average 91 basis points over the year, which led to interest income falling £52.5m to £759.2m.
Starling reshuffle from top to bottom
Starling pointed to a £20m investment pumped into its software-as-a-service arm Engine as driving a short-term dampening of profit. Engine helped cushion the broader hit to its bottom line after delivering a 24.5 per cent revenue surge to £70m.
The neobank’s top bosses have said it is on a “comfortable path” to delivering £100m in revenue. Starling’s chief executive Raman Bhatia said the firm was looking to create their next “unicorn” with Engine.
At the very top of the fintech group a reshuffle is also underway following a flurry of departures from Starling’s board.
Starling named Colin Bell – who has served as a non-executive director at Starling since November 2025 – as chairman of its board in June ahead of the departure of incumbent David Sproul.
The banking veteran’s nomination follows two departures from the neobank’s board. Marcus Traill, who is connected to the bank’s biggest shareholder billionaire Harald McPike, departed in June, as did Richard Watts, a fund manager at one of the firm’s investors Chrysalis.
Tracy Clarke – who led the hunt for a new chair – is set to follow, as per Starling’s annual report.
Morning Wire revealed earlier this year that McPike – who is understood to control a third of the company’s holdings – had previously been at odds with the board on a listing destination but had gone cold on ambitions for a London float.