Klarna Sees 27% Revenue Rise, Plans AI-Driven Workforce Reduction Amid SEK 1 Trillion GMV

Aug 27, 2024, 01:42 PM

Klarna, the Swedish fintech company known for its 'buy now, pay later' services, reported a significant financial turnaround in the first half of 2024. The company's revenue increased by 27% year-on-year, reaching approximately $1.3 billion, and it achieved an adjusted profit of $66 million, compared to a $44 million loss in the same period in 2023. The U.S. emerged as Klarna's fastest-growing market, contributing to a 16% rise in gross merchandise volume, which reached SEK 1 trillion in annualized volume. Klarna also reported an H1 adjusted operating income of SEK 673 million. Despite these positive financial results, Klarna plans to reduce its workforce significantly. The company has already decreased active positions from 4,600 to 3,500 over the past year, primarily through attrition, and aims to further cut its total headcount to around 2,000 employees. This reduction is driven by the integration of artificial intelligence, which Klarna claims performs the work of 700 employees, enhancing efficiency in areas such as customer service and marketing.