💳 Swedish Fintech Klarna Replaces Nearly 1,000 Employees with AI
Swedish fintech giant Klarna, known for its buy now, pay later services used by over 85 million customers, has scaled back hiring in the past year thanks to its adoption of AI. As a result, the company's workforce has shrunk from 4,500 to 3,500 employees through natural attrition, CEO Sebastian Siemiatkowski said in an interview with Bloomberg TV.
Despite this, Klarna continues to fill essential roles, particularly in engineering, as some areas still require skilled human professionals.
Previously, Klarna announced that its AI assistant, powered by OpenAI technologies, has replaced 700 in-house customer service agents. In a bold move, the company even presented its latest financial report via an AI-generated "double" of Siemiatkowski (see video ⤴️). According to the CEO, this demonstrates that AI could eventually replace all roles in the workplace.
📊 Klarna's recent emphasis on AI aligns with its plans for an upcoming IPO. In Q3 2024, the company reported $20 million in net profit—the first positive quarter in years.
Currently valued at $14.6 billion, Klarna has seen its valuation drop significantly from its 2021 peak of $45.6 billion, when it was most valuable European fintech. The decline reflects broader market pressures. In May 2022, the company even underwent a round of layoffs.
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