Klarna's AI Takeover: Jobs Down, Revenue Up Ahead of IPO

Klarna CEO Sebastian Siemiatkowski announced on Dec 15, 2024, a 22% workforce cut, reducing staff from 5,000 to 3,800 thanks to generative AI replacing around 700 customer service roles. While hiring freezes are in place, over 50 essential positions remain open as Klarna eyes becoming a U.S. bank. With a 27% revenue boost, the company balances efficiency with compassionate pay hikes for the 200 employees working alongside AI, all in preparation for their upcoming IPO.