Klarna, the prominent "buy now, pay later" fintech company, plans to significantly reduce its workforce as it continues to invest in the AI technology.

The firm, which is based in Sweden and has already shed over 1,000 jobs in the past year, aims to brings its employee count to as few as 2,000 in the coming years to streamline operations and prepare for a potential stock market listing.

In an interview with the Financial Times, CEO Sebastian Siemiatkowski revealed that AI has played a crucial role in driving efficiency and reducing costs, enabling Klarna to achieve substantial savings by replacing human workers with AI-powered solutions.