Klarna, a leading player in the Buy Now, Pay Later (BNPL) space, reports that it is quickly approaching $1 million in revenue per employee, driven by its proactive adoption of AI technologies.
Since 2022, the company has reduced its workforce by approximately 40% while increasing the proportion of tech employees from 36% to 52% by Q1 2025. According to the firm, 96% of its employees utilize AI daily, contributing to a 152% rise in revenue per employee since Q1 2023 and positioning Klarna for substantial growth.
AI is also helping reduce operational costs across the organization, particularly in customer service, where transaction costs have decreased by 40% since Q1 2023, all while maintaining customer satisfaction.
In presenting the results during its Q1 financial filing, CEO Sebastian Siemiatkowski stated, “Our AI-first strategy is driving exceptional returns; we’re outpacing competitors, our merchant network is scaling rapidly, and our next-gen products are reshaping money management for millions.”
A year ago, Siemiatkowski highlighted in a letter to shareholders that Klarna’s AI assistant was effectively handling the tasks of 700 employees and was central to reducing the workforce from 5,000 to 2,000. However, in a recent interview with Bloomberg, he acknowledged that the strategy may have overemphasized cost-cutting.
“Unfortunately, cost became the predominant factor in this organization. As a result, we faced lower quality,” he noted. “Investing in the quality of human support is essential for our future.”
Klarna is now piloting a remote working model for customer service representatives, comparing it to an Uber-like setup. Siemiatkowski emphasized the importance of maintaining human interaction, stating, “From a brand perspective, it’s critical to communicate to customers that human support will always be available if they want it.”