Klarna, the Swedish fintech giant, is set to nearly halve its workforce as artificial intelligence (AI) increasingly takes over tasks previously handled by humans.
The company has already reduced its headcount significantly and plans further cuts as it gears up for a potential stock market listing.
Key Takeaways
- Klarna plans to reduce its workforce from 3,800 to around 2,000 employees.
- AI has been instrumental in these reductions, particularly in customer service and marketing.
- The company has seen a 73% increase in average revenue per employee.
- Klarna is considering a stock market listing, possibly as early as next year.
Workforce Reductions
Klarna has already shed more than 1,000 workers in the past year, bringing its headcount down to 3,800 from 5,000. The company plans to cut nearly 2,000 more jobs in the coming years, although no specific timeframe has been provided. These reductions have been achieved through natural staff turnover and a hiring freeze, rather than redundancies.
Role of AI
AI has played a crucial role in enabling these workforce reductions. Klarna's AI chatbot, for instance, performs the work of 700 human employees in customer service. This has reduced the average resolution time for customer service issues from 11 minutes to just two, while maintaining the same customer satisfaction scores as human agents. The company is also leveraging AI in its marketing efforts, with an AI assistant helping consumers discover and choose products tailored to them.
Financial Performance
Klarna's interim results show a 27% increase in revenue to 13.3 billion Swedish krona (£990 million). The company has also swung to an adjusted profit of 673 million krona from a loss of 456 million krona last year. This turnaround comes after a period of financial losses following rapid expansion in the US.
Future Plans
Klarna is eyeing a stock market listing, possibly as early as next year. CEO Sebastian Siemiatkowski has indicated that an initial public offering (IPO) in the US is a strong possibility, although European options are also being considered. A recent valuation estimate suggests that Klarna could achieve a valuation of between 15 billion and 20 billion dollars at an IPO.
Conclusion
Klarna's strategic shift towards AI and its plans for a stock market listing mark a significant transformation for the company. While the workforce reductions are substantial, the company aims to enhance efficiency and profitability through technological advancements.
Sources
- Klarna plans to nearly halve workforce as AI replaces human jobs, Yahoo Finance UK.
- Klarna plans to nearly halve workforce as AI replaces human jobs, EDP24.
- Klarna plans to nearly halve workforce as AI replaces human jobs | Guernsey Press, Guernsey Press.
- Sweden's Klarna says AI chatbots help shrink headcount, Yahoo Finance UK.
- Sweden's Klarna says AI chatbots help shrink headcount, AOL.com.
