Swedish fintech giant Klarna, a pioneer in buy now, pay later systems, recently announced plans to use AI to increase efficiency and reduce its headcount by around 50%.
Klarna CEO Sebastian Siemiatkowski As revealed in the interview, According to the Financial Times, the company is targeting a “targeted” workforce of around 2,000, down from 5,000 at its peak.
These cuts are already underway, with Klarna cutting its workforce to 3,800 last year, mostly through attrition rather than layoffs.
What is driving Klarna’s lean future? Massive rollout of AI solutions, especially in marketing and customer service.
Siemiatkowski believes that by implementing AI in customer service and marketing, the company can operate and improve even with a smaller team.
“Not only can we do more with less, we can do much more with less,” he told the FT.
Klarna’s AI investment comes as the company prepares for an anticipated IPO, hoping to recover from a difficult period that saw its valuation plummet from $46 billion in 2021 to $6.7 billion last year.
Touting the benefits of AI (doubling revenue per employee from about $400,000 to $700,000) is likely to be a key aspect Klarna is emphasizing to investors.
While Klarna sees a bright future in an AI-driven world, Siemyatkowski acknowledged that the rapid advancement of the technology could have broader societal implications.
speaking On the BBCHe urged the government to consider alternative ways to support people who lose their jobs to AI, arguing that it was “overly simplistic” to simply expect new jobs to be created.
Klarna’s CEO’s comments highlight growing concerns about the potential for AI to massively disrupt the job market.
no way Recent Reports The Public Policy Institute has warned that in a “worst-case scenario”, up to 8 million jobs could be lost to AI automation in the UK alone.
The report highlighted the need for proactive policies to manage this transition and ensure that the economic benefits of AI are distributed fairly.
Klarna isn’t alone in its AI-driven quest for efficiency. Language learning app Duolingo recently made headlines: Fire human translators Opinions supporting AI alternatives are being criticized on social media.
Another report found that customer service representatives were among the jobs most at risk of being replaced by AI.
As more and more companies integrate AI into their operations, the challenge will be finding a balance between leveraging the technology’s potential while minimizing the disruptive impact on workers.
The path ahead for Klarna is clear: leveraging AI, streamlining operations and positioning itself as a more agile and nimble player in the fintech space.
“I’m very happy to see this come to fruition,” Siemiatkowski said.
The remaining question is how society as a whole will adapt to the AI work revolution that Klarna and others are eagerly leading.