Don't replace, reskill | Why Klarna could 'pay later' as it plans to halve workforce with AI

Popular buy now, pay later app Klarna hit the headlines earlier this week when CEO Sebastian Siemiatkowski announced plans to drop the company’s headcount by half – around 2,000 employees – through artificial intelligence (AI).

In a statement to the Financial Times, Siemiatkowski revealed his belief that the company could run just as effectively even with just half of its current staff.

With a headcount of just under 4,000 employees at the end of June, this could see the company losing 2,000 staff in the coming months—though there is no fixed timeframe in place.

“About 12 months ago, we would have been about 5,000 active positions within the company, and we are now down to about 3,800,” he said, clarifying that staff had not been laid off, but instead left through natural attrition.