Buy-now-pay-later fintech company Klarna has accomplished a remarkable business transformation by reducing its workforce from 5,527 employees in 2022 to approximately 2,907 by 2025—a 47% decrease achieved through natural attrition and hiring freezes. Rather than hiring replacements, Klarna deployed AI-driven technology across marketing, customer service, and internal operations. The company’s CEO Sebastian Siemiatkowski revealed that this strategy enabled Klarna to increase revenue by 108% while maintaining flat operating costs.
AI Powers Customer Service Revolution
Klarna’s AI customer service chatbot has become the company’s most impressive automation success story. The chatbot initially handled the workload of 700 full-time agents and processed 2.3 million conversations in its first month of deployment in February 2024. By 2025, the AI system expanded to manage work equivalent to 800 full-time employees, dramatically reducing labor costs while maintaining service quality.
Employee Compensation Climbs Significantly
Despite the headcount reduction, Klarna committed to sharing efficiency gains with remaining staff. Average employee compensation surged 60% from $126,000 in 2022 to $203,000 in 2025. Siemiatkowski emphasized this approach ensured employees remained fully incentivized and benefited from AI-driven productivity improvements.
Klarna’s post-IPO performance has been notable, with Q3 revenue reaching $903 million, exceeding analyst expectations. The company now serves 114 million customers across 850,000 merchants. However, the company reported a $95 million quarterly loss due to new U.S. accounting standards following its September IPO. Despite strong operational metrics, Klarna’s stock has declined nearly 30% since going public.