Klarna reduces workforce as AI takes over tasks

Swedish fintech company Klarna has halted hiring and reduced its workforce by 22% to 3,500 employees while implementing AI solutions, according to CEO Sebastian Siemiatkowski. In an interview with Bloomberg Television, reported by Aisha S Gani and Caroline Hyde, Siemiatkowski revealed that about 200 employees now use AI for their core work. The company’s AI assistant, powered by OpenAI, has replaced 700 customer service positions. To maintain employee support, Klarna promises to share productivity gains through increased salaries. The company, which recently filed for a US IPO, aims to expand its banking operations in the United States.