Practically half of the staff at present working at “purchase now, pay later” startup Klarna might be changed by AI within the subsequent few years.
Klarna CEO Sebastian Siemiatkowski informed The Monetary Instances final week that the corporate goals to virtually halve its workforce inside the subsequent few years, from 3,800 individuals to 2,000. As a substitute of layoffs, the corporate will proceed its hiring freeze that began in September and never rent replacements for individuals who depart the corporate.
“By merely not hiring, which we’ve not performed since September … the corporate is sort of changing into smaller and smaller,” Siemiatkowski said. He identified that the typical income per Klarna worker had elevated by 73% year-over-year.
The remaining workers could 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 informed the Monetary Instances.
Klarna’s workers numbered 5,000 one 12 months in the past, however departing workers and the AI-induced hiring freeze have lower the corporate right down to its present dimension.
Sebastian Siemiatkowski. Picture by David M. Benett/Dave Benett/Getty Photographs 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 put up on X in Might 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.