Klarna is reassigning engineers and marketers to customer support after its AI bet went too far

Core Insights - Klarna is undergoing significant workforce changes, with employees being reassigned to customer support roles as the company prepares for its IPO, aiming to raise up to $1.27 billion [2][3] - The CEO acknowledged that previous AI-driven cost-cutting measures were excessive, leading to a reassessment of the company's reliance on AI for operational efficiency [3][9][10] Group 1: Workforce Changes - Employees in various departments, including engineering and marketing, have been informed that their roles are no longer needed and are being redirected to customer support positions [2][5] - The company has created a "talent pool" for employees whose roles have been eliminated, allowing them to remain on payroll while awaiting reassignment [6] - Some employees in senior positions have been reassigned to the customer success team, indicating a shift in focus towards human support [6] Group 2: AI and Operational Strategy - Klarna has eliminated over 1,200 external SaaS tools and restructured teams as part of its AI integration strategy [3] - The company previously claimed that its AI assistant could perform the work of 700 customer support agents, reflecting a strong push towards automation [9] - However, the CEO has recognized that overreliance on AI can degrade customer experience, emphasizing the need for quality human support [10][11] Group 3: Customer Experience Initiatives - Klarna introduced "Action Day" sessions to analyze customer purchasing behavior and identify barriers to transaction completion [7][8] - These sessions were initially full-day events but were scaled back due to concerns about time management among employees [8] - The company is exploring a gig work model for customer service agents, indicating a potential shift in staffing strategy [9]