Practically half of the staff at present working at “buy now, pay later” startup Klarna might be changed by AI in the subsequent few years.
Klarna CEO Sebastian Siemiatkowski informed The Monetary Occasions final week that the firm goals to virtually halve its workforce inside the subsequent few years, from 3,800 individuals to 2,000. As an alternative of layoffs, the firm will proceed its hiring freeze that began in September and never rent replacements for individuals who depart the firm.
“By simply not hiring, which we haven’t done since September … the company is kind of becoming 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 mentioned.
Associated: There Are New Guidelines for ‘Purchase Now, Pay Later’ Applications — This is What to Know
“Not only can we do more with less, but we can do much more with less,” he informed 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 reduce the firm 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 two minutes, in contrast to 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 Quantity of Staff 2 Years In the past.
Siemiatkowski wrote in a now-deleted submit on X in Might that Klarna’s in-house advertising staff was half the measurement 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 development in the U.S., with income and working earnings up 17% and 21% year-over-year respectively.
Klarna is reportedly exploring a U.S. IPO at a valuation of $20 billion.
