Klarna, a leader in buy now, pay later (BNPL) services, has cut over 1,000 jobs as it pivots towards AI, with further reductions anticipated before a potential IPO. Despite facing SwKr2.33 billion (£173 million) in credit losses in early 2024, Klarna highlighted that AI has helped reduce costs and boost profits. The company’s workforce has dropped from 5,000 to 3,800, with plans to cut down to 2,000.
AI is increasingly integral to Klarna’s operations, particularly in customer service, where chatbots have replaced 700 employees. CEO Sebastian Siemiatkowski suggested a possible IPO next year, with London or New York as potential venues. Klarna continues to dominate the BNPL market with 575,000 merchants across 45 countries and 31 million monthly users.
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