"Founded in 2005, the buy-now, pay-later firm plans to IPO soon, seeking to raise up to $1.27 billion, according to an SEC filing on Tuesday. As Klarna prepares to go public, the firm has recently been informing staff that their roles are no longer required, redirecting them into customer support positions via an internal talent pool, according to three current employees who spoke on condition of anonymity as they were not authorized to speak publicly."
"The company has talked up AI as it's geared up for its New York Stock Exchange debut, eliminating over 1,200 external SaaS tools, restructuring teams, and placing some employees in the talent pool, Business Insider previously reported. But the latest move points to a growing reality: doubling down on AI isn't always the cure-all that companies expect. While it can trim costs and streamline operations, overreliance on AI can lead to unintended consequences like a worse customer experience."
Klarna has reassigned employees across business operations, analytics, marketing, engineering, and legal into an internal talent pool and into customer support roles after determining some roles were no longer a priority. The firm eliminated over 1,200 external SaaS tools, restructured teams, and redirected staff as it prepares for an IPO that could raise up to $1.27 billion. CEO Sebastian Siemiatkowski said that "nothing will be as valuable as humans," acknowledging earlier overreliance on AI-driven cost-cutting. Employees in the talent pool remain on the payroll while awaiting reassignment; if no suitable role is found, they may be let go.
Read at Business Insider
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