Almost half of the workers presently 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 nearly halve its workforce throughout the subsequent few years, from 3,800 folks 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 have not achieved since September … the corporate is form of turning into smaller and smaller,” Siemiatkowski said. He identified that the common income per Klarna worker had elevated by 73% year-over-year.
The remaining staff could have AI to assist with duties, Siemiatkowski stated.
Associated: There Are New Guidelines for ‘Purchase Now, Pay Later’ Packages — Here is What to Know
“Not solely can we do extra with much less, however we will do far more with much less,” he advised the Monetary Occasions.
Klarna’s staff numbered 5,000 one yr in the past, however departing staff and the AI-induced hiring freeze have lower the corporate right down to its present dimension.
Sebastian Siemiatkowski. Photograph 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 Folks. The Firm Laid Off the Identical Variety of Workers 2 Years In the past.
Siemiatkowski wrote in a now-deleted put up on X in Could that Klarna’s in-house advertising and marketing workforce 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 progress 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.
