Klarna Set To Halve Staff Using AI Technology
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Klarna has revealed its intention to use artificial intelligence to reduce its number of workers. The Sweden-based fintech company wants to cut almost half of its staff as it gets ready to go public.
The Chief Executive Officer of Klarna, Siemiatkowski Sebastian, explained the importance of Artificial Intelligence in Klarna’s Q2 results on the 27th of August. This displayed a massive decline of the firm’s net loss last year, going from SKr854 million to SKr10 million.
Klarna Has Stopped Hiring New Workers Except For Engineers
The company has already reduced its staff from 5,000 to 3,800 the previous year. Siemiatkowski noted that Klarna might have only 2,000 workers in the future as it uses AI for things like customer service and marketing.
Siemiatkowski also added that the firm can achieve more with less, and even more beyond that. He said Klarna is aiming for around 2,000 employees, though the firm does not want to set a specific deadline for this target.
To reach this goal, Klama has put a huge halt to the hiring of workers except engineers, using natural departures instead of the normal lay-off.
Sebastian has emerged as one of the most critical European employers as regarding the importance of AI. He asserted that cutting down employment rate through AI interference is a challenge for the governmental authorities to fix.
Klarna Is Preparing For Its Long-Anticipated Stock Market Debut
The company is getting financial advisers ready for its long-awaited stock market debut, which could happen in the first half of next year. Morgan Stanley, JPMorgan Chase, and Goldman Sachs are expected to take key roles, according to people who know about it.
Siemiatkowski also said he would not comment on the IPO plans or the possibility of existing investors selling shares.
He noted that no decisions had been made yet and that things would happen in due course. He added that Klarna had raised its average yearly revenue per worker from $400,000 last year to $700,000 by reducing its staff and saving money with AI.
The importance and use of Artificial Intelligence might likely be a major selling point for Klarna’s Initial Public Office. As soon as the European tech scene was evaluated at $46billionn in 2021, the valuation fell to $6.7billion after a year, due to the rise in its interest rate and the fall in stock prices.
Bankers and investors think Klarna could be valued between $15 billion and $20 billion when it goes public. Klarna saw a 22 percent rise in credit losses, reaching SKr1.1 billion in the second quarter compared to last year, but its revenues grew 25 percent to SKr6.9 billion.
From 2005 through 2019, Klarna was always profitable, but its fast expansion in the US caused it to suffer significant losses that year.
