Swedish Klarna Job Reduction Pushes for AI-based Customer Management 

Swedish payment company Klarna has announced a reduction in its workforce as its reliance on AI management for customer increases, unleashing a wave of Klarna job reductions. 

The company’s AI assistant can now perform the tasks of 700 employees and has reduced the average time to solve customer inquiries from 11 minutes to just two minutes. 

Klarna, known for its ‘buy now, pay later’ (BNPL) service, was one of the first companies to adopt generative AI to cut costs and boost productivity. 

Workforce Shrinks, Productivity Increases 

According to Reuters, in an interview, Klarna’s Chief Executive Officer (CEO), Sebastian Siemiatkowski, explained that the company’s workforce decreased from around 5,000 emplyees a year ago to 3,800 as it further pushed for AI reliance. 

The Swedish CEO also focused on how the Klarna job reduction happened through attrition rather layoffs. 

“About 12 months ago, we would have been about 5,000 active positions within the company, and we are now down to about 3,800”, Siemiatkowski explained. 

“By simply not hiring, which we haven’t done since September … the company is kind of becoming smaller and smaller,” he added. 

Klarna boosted its productivity despite having a reduced workforce. Last year, the average revenue generated per employee increased by 73%, going from $ 392,000 (four million Swedish crowns) to $687,000 (7 million Swedish crowns).  

The company plans to sustain this path by focusing on hiring engineers in its future recruitment strategy. 

Siemiatkowski also hinted at a potential further Klarna job reduction in staff numbers to around 2,000 employees, though he did not specify a timeframe for the change. 

AI-driven Financial Growth Led to Klarna Job Reductions

In 2021, Klarna had a valuation of $46 million, but despite having around 7,000 empliyees, it generated relatively low revenue. This year, however, the Swedish company reported a first-half revenue of almost $1.28 billion (13.3 billion Swedish crowns), marking a 27% year-over-year (YoY).  

Looking ahead, CEO Siemiatkowski mentioned that a potential public offering (IPO)seems reasonable, although no firm decision has been made yet. 

While Klarna is looking into a US listing, it is also considering opportunities in Europe.  

As Klarna continues to incorporate AI into its processes, the fintech company is placing itself on a path where the future of technological integration into services is vital for sustaining profit while maintaining growth. 

Klarna’s success with AI integration into the workflow proved that the intelligent technology can be more than a replacement for humans. Despite the Klarna job reductions, AI has proven to be a powerful assistant accelerating achievement when used effectively.

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