Starling Bank Faces Backlash Over Return-to-Office Mandate Amid Space Shortage
This Article Includes
Starling Bank, Britain’s first online-only bank, is facing significant employee dissatisfaction following its decision to increase office attendance requirements.
The neobank, headquartered in London, announced that hybrid workers must now spend at least 10 working days per month in the office—despite lacking sufficient desk space to accommodate them.
The bank, which employs over 3,000 people, has only about 900 desks across its offices in London, Cardiff, and Southampton, according to The Guardian. In an email to employees, Starling acknowledged the spatial limitations, stating, “We are considering ways in which we can create more space.”
Employee Resignations and Criticism
The policy shift has sparked immediate backlash, with some employees resigning and others expressing frustration on internal Slack channels.
One staff member criticized the change, calling it a move toward a “bland grey corporate hellscape filled with dead-eyed zombies who care about nothing more than doing the bare minimum, clocking off, and collecting a paycheque.”
Another employee cited the unanticipated disruption to their work-life balance as their reason for leaving.
Starling CEO Raman Bhatia defended the move, asserting that the policy had been under consideration for months and expressing surprise at the negative reactions.
A bank spokesperson clarified, “Starling recently formalized a long-standing practice in which colleagues were encouraged to work in their local office for two to three days a week. People managers are able to provide additional support to colleagues with wellbeing and other personal needs.”
Fully remote or flexible arrangements already in place will remain unchanged, the bank added.
Broader Context of Return-to-Office Mandates
The controversy at Starling comes amid a broader global debate over return-to-office (RTO) mandates. Many companies, including Amazon and Bolt, have faced employee resistance to similar policies, with some workers leaving their roles or taking legal action to retain flexible work options.
In Europe, commercial real estate trends reflect shifting office dynamics. According to JLL, around half of all office clients in major markets such as the U.K., Germany, and France are seeking to downsize their office space. Despite this, European office attendance has fared better than in the U.S., bolstered by more accessible public transport and urban layouts.
Richard Holberton, CBRE’s head of European office research, told Bloomberg in July, “Offices are returning to vibrancy… but the challenge remains of matching employers’ expectations with that of their employees over the long term.”
A Rocky Year for Starling Bank
The backlash over the RTO policy comes shortly after Starling Bank faced a £29 million fine from the U.K.’s Financial Conduct Authority. The penalty was for “shockingly lax” screening processes that exposed the bank to potential criminal activity, adding to its recent challenges.
As Starling navigates these difficulties, its handling of employee concerns may play a crucial role in shaping its workplace culture and future reputation.
