Klarna has shrunk its workforce by more than 1,000 employees during the last year as it ramps up its use of artificial intelligence (AI).
The buy now, pay later company employed around 5,000 people this time in 2023, but has now shrunk headcount to 3,800, according to its interim results announcement this week.
Chief executive Sebastian Siemiatkowski told the Financial Times newspaper that it will shed 2,000 more jobs as it prepares for a potential stock market listing and increases AI deployment in customer service and marketing.
Artificial intelligence
Google and Community union team up to speed AI transformation
Using AI to full potential could unlock £119bn in productivity
In its interim report, the Swedish company said AI was taking on more and more tasks, meaning it could reduce the number of human workers.
Klarna said: “Our proven scale efficiencies have been enhanced by our investment in AI, which has driven down operating expenses and improved gross profits.”
It also said that average revenue per employee has increased by 73% compared to this time last year. One area where AI has delivered high efficiency is in customer service, where Klarna estimates it performs the work of 700 employees.
Average resolution time for customer issues has reduced from 11 minutes to just two, while maintaining the same customer satisfaction scores, it claims.
Klarna has two offices in the UK, in London and Manchester. It said reductions to headcount would be even across its site.
It is using natural attrition rather than announcing lay-offs in the first instance, and has imposed a hiring freeze on roles that are not in engineering.
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
Organisational Development opportunities on Personnel Today
Browse more Organisational development jobs
