Klarna CEO Goals to Lower Half of Workforce, Give AI the Work

Almost half of the staff at the moment working at “purchase now, pay later” startup Klarna may very well be changed by AI within the subsequent few years.

Klarna CEO Sebastian Siemiatkowski advised The Monetary Occasions final week that the corporate goals to virtually halve its workforce inside the subsequent few years, from 3,800 individuals to 2,000. As an alternative of layoffs, the corporate will proceed its hiring freeze that began in September and never rent replacements for individuals who go away the corporate.

“By merely not hiring, which we’ve not carried out since September … the corporate is sort of changing into smaller and smaller,” Siemiatkowski said. He identified that the typical income per Klarna worker had elevated by 73% year-over-year.

The remaining workers may have AI to assist with duties, Siemiatkowski mentioned.

Associated: There Are New Guidelines for ‘Purchase Now, Pay Later’ Applications — This is What to Know

“Not solely can we do extra with much less, however we will do rather more with much less,” he advised the Monetary Occasions.

Klarna’s workers numbered 5,000 one yr in the past, however departing workers and the AI-induced hiring freeze have reduce the corporate all the way down to its present dimension.

^{Sebastian Siemiatkowski. Picture by David M. Benett/Dave Benett/Getty Pictures for Klarna}

Klarna claimed in February that its AI assistant did work equal to 700 full-time, human customer support brokers. The AI assistant introduced down buyer inquiries to 2 minutes, in comparison with the earlier 11-minute common dialog wanted with human brokers.

Associated: Klarna Says Its AI Assistant Does the Work of 700 Individuals. The Firm Laid Off the Identical Variety of Staff 2 Years In the past.

Siemiatkowski wrote in a now-deleted publish on X in Might that Klarna’s in-house advertising staff was half the scale it was final yr, however was producing extra with AI and spent $6 million much less.

Klarna’s second-quarter earnings report for 2024 confirmed its third consecutive quarter of development within the U.S., with income and working revenue up 17% and 21% year-over-year respectively.

Klarna is reportedly exploring a U.S. IPO at a valuation of $20 billion.