Starling Bank is preparing to cut 130 roles as the London-based fintech moves to streamline operations following a decline in annual profit.
The neobank informed staff this week that it would restructure its banking and technology operations, leveraging artificial intelligence as it prepares for an influx of new projects.
Starling said the redundancies would eliminate “duplicate” roles and allow the company to accelerate new product launches across its platform.
“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.
The company also cited “agility” and its “ability to test, launch, learn and reorganise” as a key factor of its competitive advantage in the crowded digital banking market.
The restructuring, first reported by the Financial Times, follows a three per cent slide in profit to £217m in its latest financial year.
Revenue fell 5.6 per cent to £887m, with the Bank of England’s declining base rate identified as the primary headwind, with rates dropping an average of 91 basis points over the year.
That rate decline led to interest income falling £52.5m to £759.2m, placing significant pressure on the neobank’s core earnings despite growth elsewhere in its business.
Starling pointed to a £20m investment in its software-as-a-service arm, Engine, as a contributing factor to the short-term dampening of overall profit figures.
Engine helped cushion the broader financial hit by delivering a 24.5 per cent revenue surge to £70m, demonstrating strong commercial momentum for that division.
Chief executive Raman Bhatia has said the firm is on a “comfortable path” to delivering £100m in revenue from Engine, which he has described as the company’s next potential “unicorn.”
Leadership changes are also underway at the top of the organisation following a series of boardroom departures at the fintech group.
Starling named Colin Bell, who has served as a non-executive director since November 2025, as chairman of the board in June, replacing incumbent David Sproul.
Marcus Traill, who is connected to the bank’s biggest shareholder, billionaire Harald McPike, departed the board in June, as did Richard Watts, a fund manager at investor Chrysalis.
Tracy Clarke, who led the search for a new chair, is also set to depart the board, according to Starling’s annual report.
McPike, understood to control around a third of the company’s holdings, had previously been at odds with the board over a listing destination but has since gone cold on ambitions for a London stock market float.