Klarna, the Swedish fintech giant known for buy-now-pay-later services, recently cut its workforce by about 40%—from 5,500 to roughly 3,400 employees. Much of this was through natural attrition and a hiring freeze initiated in 2023. Simultaneously, Klarna leaned into AI, launching a ChatGPT-powered support assistant in partnership with OpenAI. This bot now handles millions of conversations across 35+ languages and replaces the work of about 700 full-time agents, reducing average resolution time from 11 minutes to under 2.

Klarna even used an AI-generated avatar of CEO Sebastian Siemiatkowski to present its Q3 2023 earnings, highlighting its deep commitment to automation. While the company hasn’t attributed a specific dollar figure to chatbot-driven profit, it reported an 11% reduction in operating expenses in Q1 2024 thanks in part to AI tools.

But in 2025, Klarna acknowledged the downside: relying exclusively on AI hurt service quality. The company resumed hiring support agents and piloted remote “gig” teams to reintroduce a human touch. Siemiatkowski admitted, “AI was cheaper, but output quality was lower,” signaling a shift toward hybrid service models.

“I am of the opinion that AI can already do all of the jobs that we, as humans, do.“

Sebastian Siemiatkowski, CEO of Klarna

Broader AI Staffing Trends

Klarna’s evolution mirrors a wider tech trend. Shopify CEO Tobi Lütke asked staff to prove why a task can’t be done with AI before hiring. Platforms like IBM WatsonX and Salesforce Einstein are automating support, while Zendesk offers AI chat tools to reduce load on human agents.

This reflects a dual trend: enthusiasm for AI efficiency, tempered by the recognition that roles like customer support or dev work may only be partially automatable. McKinsey estimates up to 30% of such tasks could be automated by 2030. Microsoft, Duolingo, and Cisco have all made AI-related layoffs, while also acknowledging limits.

Strategic Pause & IPO Timing

Klarna’s hiring freeze was part of a broader “strategic pause” to cut costs and double down on AI. Between 2023 and 2024, headcount dropped by 22–24%, largely via attrition. Rather than mass layoffs, Klarna bet on AI and internal upskilling.

Klarna filed for an IPO in March 2025 but postponed the offering due to broader market uncertainty, including geopolitical tensions and tariff risks. This decision came despite strong performance, including double-digit revenue growth in H1 2024. The delay underscores that while operational discipline and AI-driven efficiencies can strengthen fundamentals, timing an exit still depends heavily on external market conditions. Fintechs should remain flexible and align scaling efforts with investor sentiment.

Key Takeaways for Fintech Startups

The Klarna case offers timely lessons for fintech leaders navigating automation, staffing, and growth. These takeaways highlight how to harness AI effectively while maintaining service quality and strategic flexibility.

• Balance AI and Humanity: Klarna’s bot delivered big gains, but customers still value human support. Use AI to augment, not replace. Always offer human fallback.
  
  
• Adopt AI-First, With Oversight: Like Shopify, trial AI before hiring. But monitor quality—pivot quickly if performance drops.
  
  
• Use Attrition Strategically: A hiring freeze can create space for AI integration. But know when to rehire, especially in user-facing roles.
  
  
• Leverage Existing AI Tools: You don’t need custom builds. Tap into tools like ChatGPT, Salesforce, or Zendesk to get fast wins in support, reporting, and ops.
  
  
• Align Tech Growth with Market Timing: Klarna’s delayed IPO shows the importance of syncing operational efficiency with investor confidence. Stay lean, agile, and ready to adjust plans.
  
  

We help fintech teams turn insights like these into practical action. Whether you’re exploring AI tools, rethinking hiring plans, or preparing for growth, our focus is on helping you make clear, informed decisions that balance efficiency with customer experience. Get in touch to discuss how to scale sustainably and stay adaptable in a fast-changing market.