Klarna, the buy now, pay later company, has reported that its workforce has nearly halved since 2022, dropping from 5,527 to 2,907 employees, while average pay has risen by 60% to $203,000. Chief executive Sebastian Siemiatkowski attributed the reduction primarily to natural attrition, with departing staff replaced by artificial intelligence rather than new hires.
The company's AI programme now handles the work of 853 full-time staff, up from 700 earlier this year, reducing reliance on outsourced workers including those in customer service. Siemiatkowski said revenues had increased by 108% while operating costs remained flat, describing the achievement as “pretty remarkable, and unheard of as a number, among businesses”.
Klarna has not hired new staff for several years, and cost savings from AI have been used to boost pay for remaining employees. Average compensation, including taxes and pension contributions, rose from $126,000 in 2022 to $203,000. Siemiatkowski said the company was committed to sharing efficiency gains with staff to incentivise and align them with investors.
Despite the pay rises, Siemiatkowski hinted at further job cuts, aiming to increase revenue per employee from $1.1m. He also warned against costly AI datacentre investments, predicting technology would become more efficient. Klarna reported a 26% revenue jump to $903m in the third quarter, beating expectations, but posted a $95m loss due to US accounting changes following its New York stock exchange listing.
