The news: Klarna instituted a hiring freeze outside of engineers as the buy now, pay later (BNPL) provider plans to lean more on artificial intelligence (AI) to replace labor, Klarna CEO Sebastian Siemiatkowski told The Telegraph.
How we got here: Profitability has long eluded BNPL fintechs like Klarna, but the company pledged in 2022 to get back in the black.
Why it matters: Klarna’s profitability efforts are paying off.
If Klarna can replace labor with AI, its hiring freeze will help Klarna slash costs and keep up this profitability. It could also set up the company for a successful IPO, which could happen early next year.
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