Klarna Cuts 50% of Workforce, Ends Partnerships with Salesforce and Workday Amid Generative AI Overhaul

Fintech giant, Klarna CEO Sebastian Siemiatkowski announced that the company will end its service provider relationships with Salesforce and Workday as part of a major internal overhaul driven by AI initiatives.

Source: X

Klarna, known for its installment payment plans, plans to phase out both platforms in the coming weeks to consolidate its tech stack and enhance operational efficiency. 

This decision aligns with Klarna’s broader strategy to streamline its technology infrastructure by leveraging AI to standardise and simplify its processes.

“Thanks to AI agents + AI engineers getting prolific, you can rebuild most enterprise SaaS functionality, host for super cheap, and get basically 90%+ functionality,” said Linas Beliūnas, director of revenue at Zero Hash.

In addition to the software changes, Klarna is set to reduce its workforce significantly. Siemiatkowski highlighted that AI will play a crucial role in cutting operational costs, contributing to a planned reduction in the company's workforce by 50%. This move is expected to help the company operate more effectively while maintaining higher quality standards.

Klarna’s latest financial results reveal a 27% increase in revenue year-over-year, reaching SEK 13.3 billion for the second quarter. The company's aggressive cost-cutting measures and focus on AI come as part of a broader trend where companies across various sectors are implementing AI-driven solutions to enhance efficiency and reduce costs.