Practically 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 advised The Monetary Occasions final week that the corporate goals to virtually 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 completed since September … the corporate is type of turning into smaller and smaller,” Siemiatkowski said. He identified that the typical income per Klarna worker had elevated by 73% year-over-year.
The remaining staff may have AI to assist with duties, Siemiatkowski stated.
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“Not solely can we do extra with much less, however we will do rather more with much less,” he advised the Monetary Occasions.
Klarna’s staff numbered 5,000 one 12 months in the past, however departing staff and the AI-induced hiring freeze have minimize the corporate right down to its present measurement.
Sebastian Siemiatkowski. Photograph by David M. Benett/Dave Benett/Getty Pictures 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.
Siemiatkowski wrote in a now-deleted publish on X in Could that Klarna’s in-house advertising and marketing staff was half the scale it was final 12 months, 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.
