Klarna’s CEO, Sebastian Siemiatkowski, has expressed excitement over the transformative impact of artificial intelligence (AI) on his company’s operations, revealing plans to reduce the human workforce significantly. The move, he suggests, could serve as a model for the broader industry.
In Klarna’s H1 report released yesterday, Siemiatkowski highlighted the success of an AI system powered by ChatGPT, which the fintech company introduced earlier this year. After several months of implementation, the AI has proven capable of performing tasks equivalent to 700 employees, matching their productivity and maintaining customer satisfaction. This efficiency has led Siemiatkowski to consider reducing Klarna’s current workforce of approximately 3,800 employees by nearly half.
“We can do much more with less,” Siemiatkowski told the Financial Times, estimating that the company may eventually need only around 2,000 employees. However, he clarified that there is no specific timeline for this reduction.
Klarna has been cautious in its approach to staffing, having already frozen hiring for most roles except engineers late last year. The company intends to allow natural attrition to drive down its headcount, rather than actively cutting jobs. “We are not planning on cutting jobs,” stated Klarna’s global press office lead, John Craske. “However, we are acknowledging that, due to the use of AI, we are not replacing those who decide to leave.”
Klarna’s strategy reflects a broader trend in the business world, where companies increasingly adopt AI to reduce staffing costs and enhance productivity. According to data from the Federal Reserve Bank of Richmond, nearly half of companies implementing AI are doing so to cut labor expenses, while 54 percent hope to boost the productivity of their remaining employees.
For Klarna, the AI-driven approach has already yielded positive financial results. The company reported an increase in average revenue per employee from $400,000 to nearly $700,000 over the past year, alongside a reduction in losses compared to the same period in 2023.
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Siemiatkowski remains vocal about the broader implications of AI on the workforce, acknowledging the potential for significant job displacement. In an interview with the BBC, he emphasized the need for governments to address the challenges posed by AI-driven job losses without hindering technological progress. “It’s critical for government to consider what we could do for the group that could be affected, but at the same point not stop progress,” he said.
As Klarna continues its transition toward an AI-enhanced workforce, the broader business community may look to Siemiatkowski’s strategy as a blueprint for the future—though the social implications of such a shift remain a topic of debate.
