Klarna CEO Sebastian Siemiatkowski shared that the Swedish fintech company has reduced its workforce by nearly 40%, shrinking from 5,000 to around 3,000 employees. This reduction, he explained, is partly due to investments in artificial intelligence (AI) and natural attrition within the company.Â
Siemiatkowski pointed out that job cuts have been visible on platforms like LinkedIn, showcasing the company’s shrinking headcount, according to CNBC.
Klarna has been proactive in integrating AI across its operations, resulting in significant productivity gains. For instance, last year, the company used an AI-generated version of Siemiatkowski to announce its third-quarter results, emphasizing how AI could replace certain roles.Â
Additionally, Klarna partnered with OpenAI in 2023, launching an AI-driven customer service assistant that reportedly replaced the work of 700 customer service agents.
According to Klarna’s IPO prospectus, the company’s workforce dropped from 5,527 employees in December 2022 to 3,422 employees by the end of 2023. Siemiatkowski clarified that while AI played a role in reducing headcount, natural attrition was also a factor. He noted that Klarna had informed its staff of its intention to shrink the company, halting new hires and allowing for a 15-20% annual attrition rate to reduce the workforce further.
Despite the hiring freeze, Klarna continued to advertise some open positions, particularly in Europe. Currently, the company is looking to fill about 10 roles. Siemiatkowski also mentioned that Klarna plans to hire more human customer service agents in the future, but they would operate in a flexible, “Uber-type” model, as the heavy reliance on AI had led to some dissatisfaction with work quality.
