Klarna to Halve Workforce as AI Drives Efficiency

The buy-now-pay-later giant plans to reduce its staff to 2,000, leveraging AI for enhanced productivity and profitability ahead of a potential IPO.

Klarna has already reduced its workforce from 5,000 to 3,800 and aims to cut it further to 2,000 employees.
CEO Sebastian Siemiatkowski claims AI will handle tasks in marketing and customer service, increasing revenue per employee by 73%.
The company reported a 27% revenue increase and a swing to a first-half profit of $66 million in 2024.
Klarna's AI chatbot is performing the work of 700 customer service agents, reducing issue resolution time from 11 minutes to two.
The firm is preparing for an IPO, potentially as early as next year, with a valuation target of up to $20 billion.