Klarna, the Swedish fintech giant, has successfully leveraged artificial intelligence to optimize its workforce, leading to a significant 40 percent decrease in employee headcount, according to CEO Sebastian Siemiatkowski.
In a recent interview with CNBC’s Power Lunch, Klarna CEO Sebastian Siemiatkowski revealed that the company has managed to reduce its workforce by approximately 40 percent, attributing this achievement to strategic investments in AI and natural attrition within the company. Siemiatkowski stated, “The truth is, the company has shrunk from about 5,000 to now almost 3,000 employees. If you go to LinkedIn and look at the jobs, you’ll see how we’re shrinking.”
Klarna, known for its buy now, pay later (BNPL) services, has been at the forefront of AI adoption, integrating the technology across various aspects of its operations. The company has been vocal about the productivity gains resulting from its AI investments, even going as far as using an “AI-generated version” of Siemiatkowski to announce its third-quarter results last year, demonstrating the potential for AI to automate numerous jobs.
In 2023, Klarna formed a partnership with OpenAI, the creators of ChatGPT, and subsequently launched an AI-powered customer service assistant the following year. The company reported that AI was handling the workload equivalent to 700 customer service agents, showcasing the technology’s ability to streamline operations and boost efficiency.
According to Klarna’s IPO prospectus filed in March, the company’s headcount decreased from 5,527 full-time employees at the end of December 2022 to 3,422 staff members by December last year. The reduction was attributed to the company’s efforts to leverage AI and lower its overall headcount, with expectations of further decreases over time.
Siemiatkowski clarified that the headcount reduction was not solely due to AI implementation but also a result of natural attrition. He explained, “We have simply communicated to our employees that what we’re going to do is we’re gonna shrink, so we’re going to stop hiring. Natural attrition in a company like ours is 15-20 percent per year, so we shrink naturally 15-20 percent by people just leaving.”
Despite the company’s hiring freeze announced in 2023, Klarna continued to advertise open roles, primarily in Europe, as reported by TechCrunch. However, Siemiatkowski acknowledged in a separate Bloomberg interview that the company’s full tilt toward AI-based support roles had led to lower quality work, prompting plans to recruit more human customer service agents in an “Uber type of setup.”
Klarna’s long-awaited IPO, which was expected earlier this year following the filing of its prospectus in March, was delayed due to market volatility caused by President Donald Trump’s sweeping tariff announcement in early April. As the market stabilizes, IPOs are back on the calendar, with companies like eToro and Chime Financial moving forward with their offerings. Klarna has yet to provide an updated timeline for its IPO plans.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
