The financial technology company Klarna has reported a significant transformation of its operations, attributing the changes to a strategic focus on artificial intelligence. Over the past three years, the firm has seen its employee count nearly halve while simultaneously boosting average compensation for its remaining staff by approximately 60%.
According to the company, its headcount has been reduced from over 5,500 to just under 2,900 since 2022. This reduction was achieved primarily through natural attrition, with departing employees being replaced by automated systems rather than new hires. An internal AI initiative has further contributed to this shift, with technology now performing work equivalent to that of over 850 full-time positions, a notable increase from earlier this year.
The CEO stated that this operational overhaul has enabled the company to achieve a 108% increase in revenue while keeping operating costs stable, a result he described as exceptional in the business landscape. The efficiency gains have been partially redirected to employee compensation. The firm made a commitment to its workforce that benefits from AI-driven efficiencies would be shared, aiming to align employee incentives with those of investors to foster continued innovation.
Average total compensation per employee has reportedly risen from $126,000 to $203,000 during this period. Leadership has expressed an ambition to continue increasing revenue generated per employee, a metric that currently stands at $1.1 million, suggesting the potential for further organizational changes.
The announcement accompanied the company’s latest quarterly earnings, which showed a 26% year-on-year revenue increase to $903 million, surpassing market forecasts. However, the period also resulted in a net loss of $95 million. The company attributed this loss largely to new accounting standards it must follow in the United States following its recent stock market listing in New York.
In related commentary, the CEO cautioned against overly expensive investments in the data infrastructure powering AI, predicting that the technology’s efficiency will improve over time. The developments at Klarna highlight the ongoing impact of automation on corporate structures and labor dynamics within the fintech sector.