Klarna: AI lets us cut thousands of jobs - but pay more

Published On Aug 28, 2024, 6:08 AM

Klarna, a leading buy now, pay later firm, is planning significant job cuts, aiming to reduce its workforce from 3,800 to 2,000 by incorporating artificial intelligence (AI) into its operations. This follows a current reduction from 5,000 employees over the past year. The firm's CEO, Sebastian Siemiatkowski, believes this AI investment will enhance efficiency, lower operating costs, and ultimately increase pay for remaining employees. However, he acknowledged the broader impact of AI on the job market, suggesting a need for government intervention to support displaced workers. Klarna recently reported a 27% revenue increase, citing AI-driven scale efficiencies, and is preparing for a potential stock market listing, which might attract investors.