Klarna, the Swedish fintech powerhouse best known for its “Buy Now, Pay Later” services, has confirmed a sweeping internal transformation powered almost entirely by artificial intelligence. In what analysts are calling one of the most aggressive workforce restructurings in modern corporate history, the company revealed it has cut nearly half its workforce in just three years, while simultaneously raising the salaries of remaining staff by 60%.
Rather than carrying out mass layoffs, Klarna allowed a large portion of its talent pool to shrink through a hiring freeze and natural attrition, with AI systems stepping in to absorb their work. The company reported that internal AI tools now complete the equivalent tasks of 853 full-time employees, up from 700 earlier this year.
Revenue Soars as Human Labor Shrinks
The strategy has created an economic separation that CEO Sebastian Siemiatkowski describes as “unheard of” in modern business. While the company’s headcount dropped from 5,527 in 2022 to 2,907 today, Klarna’s revenues surged. Since Q3 2022, revenue has climbed an impressive 108%, while operating expenses have increased by only 2%, a flat cost line rarely seen during rapid growth phases.
In the third quarter of 2025 alone, Klarna generated $903 million in revenue, a 26% year-over-year jump.
This efficiency push has driven Klarna’s revenue per employee to $1.1 million, placing it among elite software licensing firms despite the company’s complex operational structure.
A 60% Pay Raise: The AI Dividend
Rather than pocket all savings from automation, Klarna has redirected a significant share of the financial gains to its now smaller workforce. Average total compensation, including pension contributions and taxes, rose from $126,000 in 2022 to $203,000 today.
Siemiatkowski noted that this was not corporate generosity but a strategic investment. Klarna wants employees to embrace AI tools rather than fear them, framing the new compensation structure as a reward for adapting to an automation-first environment.
The message is clear: higher output powered by AI equals higher pay for the remaining human workforce.
AI at the Center of Operations
The driving force behind Klarna’s shift is “Kiki,” its OpenAI-powered internal AI assistant. Kiki now handles two-thirds of all customer service chats, representing a massive offloading of tasks once done by humans. While Klarna briefly rehired human agents in May 2025 following complaints about AI empathy gaps, today’s numbers confirm the company’s direction remains firmly AI-first.
Klarna’s reliance on AI has fundamentally altered its labor structure, pushing it toward what Siemiatkowski describes as a “smaller, elite workforce.” This group is expected to work alongside AI, supervise automated systems, and manage increasingly sophisticated digital operations.
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Preparing for a Public Listing, With Even Fewer Humans?
With Klarna eyeing a long-awaited U.S. IPO, the company expects its revenue-per-employee metric to climb even higher in the coming years. This suggests that the workforce may shrink further as AI becomes even more capable and cost-effective.
Siemiatkowski emphasized that Klarna has made a “commitment” to share efficiency gains with employees in the form of higher pay, but he also hinted that AI’s role will continue to expand, possibly reducing human involvement even more.
The company now stands at the forefront of a major economic shift: fewer humans, more machines, and significantly higher salaries for the employees who remain. Whether this represents the future of work or a unique Klarna experiment remains to be seen, but the world is watching closely.
