Klarna CEO Discusses AI's Role in Profitability and Workforce Changes

Klarna has halted hiring for a year, replacing hundreds of roles with AI, leading to a 22% reduction in staff. CEO Sebastian Siemiatkowski highlighted that AI is performing tasks equivalent to 700 customer service agents, and employees are incentivized with potential pay increases from productivity gains. The company, valued at $14.6 billion, is preparing for a US IPO and aims to expand its banking operations in the US, potentially investing $1 billion for faster licensing. Klarna's strategic shift to AI is part of its cost-cutting measures as it nears profitability.