Starling Bank is preparing to cut around 130 jobs in a bid to simplify its operations after a drop in profits, the Financial Times has reported.

The neobank told staff earlier this week that it will restructure its banking and technology operations, leading to the elimination of “duplicate” roles, the paper said, citing two people familiar with the process.

Executives at the company reportedly believe this reorganisation will improve internal collaboration and allow it to launch new products more quickly.

Starling said that the move was necessary as it ramps up AI usage across its operations.

“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, adding 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’s revenues dropped six per cent in the year to March, falling to £887 million, while profits dipped three per cent to £277 million. The bank said this was in part due to investments made in Engine, its digital banking software that Starling hopes will fuel international growth.

The company has struggled to grow outside its home market of the UK, and pulled out of an attempt to secure an EU banking licence in 2022.

In June, Starling launched a new AI-powered fraud detection feature that it said could detect 10 different types of potential fraud before customers fell victim to them.

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