Swedish payments firm Klarna has cut hundreds of jobs and anticipates further reductions as it integrates AI technology to manage customer inquiries efficiently. The company reported that its AI chatbots have significantly decreased the time needed to resolve customer issues from 11 to 2 minutes.
Klarna, known for its “buy now, pay later” service and expected to seek a stock market listing next year, has pioneered Generative AI to reduce costs and enhance productivity. The company achieved an adjusted profit of 673 million Swedish crowns ($66 million) for the year’s first half, a notable turnaround from its previous losses.
CEO Sebastian Siemiatkowski revealed that Klarna’s workforce has decreased from about 5,000 employees a year ago to approximately 3,800, with most of the reduction coming through attrition rather than layoffs. The company has not hired new staff since September and plans to continue this trend, focusing only on recruiting engineers. Siemiatkowski mentioned that the headcount could drop to 2,000, though no specific timeline was provided.
Klarna is a Swedish fintech company that offers online payment solutions for consumers and merchants. Founded in 2005, Klarna is best known for its “Buy Now, Pay Later” (BNPL) service, allowing customers to make purchases and pay for them later, often without interest. The company has grown rapidly, becoming one of the largest private fintech companies globally. Klarna’s innovative approach to payments has made it a popular choice among online shoppers, particularly in Europe and the United States.
Over the past 12 months, Klarna’s revenue per employee has surged by 73%, increasing from 4 million crowns to 7 million crowns. The company’s total revenue for the first half of the year was 13.3 billion crowns, a 27% increase from the previous year, driven by a 38% revenue boost in the U.S. Klarna’s adjusted profit is a significant improvement from a loss of 456 million crowns last year.
Siemiatkowski also indicated that an initial public offering (IPO) next year is possible, though a firm decision has yet to be made. Klarna is considering both U.S. and European options for the potential listing.
