Starling Bank is set to remove roughly 130 positions as it reshapes parts of the business and increases automation after a fall in earnings, reported the Financial Times.
Staff were informed this week that the lender would reorganise its banking and technology divisions, a move expected to remove “duplicate” roles, according to sources cited by the news publication.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Executives believe the overhaul should help the company bring out products faster and improve co-ordination across teams.
The changes were needed because several large projects had finished and it was relying more on AI in day-to-day work, according to the bank.
“A key factor in our competitive edge over legacy banks is our agility; our ability to test, launch, learn and reorganise at pace,” the bank said.
It added that it had told staff that it was changing parts of its banking team structure to “simplify how we operate, reduce instances of duplication, and drive further product delivery”.
The company, established by Anne Boden in 2014, has a workforce of more than 4,000.
For the year to March, group income was down 6% to £887m ($1.1bn), while pre-tax profit slipped 3% to £217mn.
As per the report, the weaker performance was partly linked to spending on Engine, Starling’s banking software arm, which is believed to support its overseas growth goals.
The group serves 6.2 million customers, mainly in the UK.
It has found it difficult to grow its retail banking operations abroad and abandoned a bid for a European banking licence in 2022.
Starling has also been viewed as a possible stock market listing candidate. Last year, chief financial officer Declan Ferguson said the company was split over whether a future IPO should take place in London or New York.
