Klarna CEO Aims to Cut Half of Workforce, Give AI the Work

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

Klarna CEO Sebastian Siemiatkowski told The Financial Times final week that the corporate goals to nearly halve its workforce throughout the subsequent few years, from 3,800 individuals to 2,000. As a substitute 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 have not accomplished since September … the corporate is sort of changing into smaller and smaller,” Siemiatkowski stated. He identified that the typical income per Klarna worker had elevated by 73% year-over-year.

The remaining staff can have AI to assist with duties, Siemiatkowski mentioned.

Associated: There Are New Rules for ‘Buy Now, Pay Later’ Programs — Here’s What to Know

“Not solely can we do extra with much less, however we are able to do way more with much less,” he advised the Monetary Instances.

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

^{Sebastian Siemiatkowski. Picture by David M. Benett/Dave Benett/Getty Photographs 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 People. The Company Laid Off the Same Number of Employees 2 Years Ago.

Siemiatkowski wrote in a now-deleted post on X in Could that Klarna’s in-house advertising and marketing group was half the dimensions 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 earnings up 17% and 21% year-over-year respectively.

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