Klarna CEO warns AI-related layoffs could hurt prime loan borrowers

AI-related layoffs sweeping U.S. companies could impact prime loan borrowers, said Klarna CEO Sebastian Siemiatkowski.

“What I’m concerned about is probably closer to the medium term than the short term. If you look at the short term, I think it looks pretty healthy… The big kind of unknown is the transformation that AI is driving,” Siemiatkovsky told FOX Business, emphasizing how rapidly advancing technology is becoming a bigger threat to office workers than blue-collar workers.

Siemiatkowski, who led Sweden’s buy now, pay later IPO through September, said he is closely monitoring the wave of corporate layoffs, noting that many of those affected are not individuals with weak mortgages or low credit.

They are workers with strong credit scores who could face more economic pressures as artificial intelligence reshapes the job market. It’s almost the opposite of what lenders typically see when looking at credit scores, according to Siemiatkowski.

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“These are the people who have more money and are affected. “It’s not people doing grocery jobs or restaurant jobs…there’s still a lot of demand,” he added. “But it’s the office worker who made so much money that there are more potential implications. So it’s very different than what we’ve seen historically.”

It’s something Klarna will “monitor” as a credit issuer and lender, he said.

However, Siemiatkovsky remains confident about consumer health in the near term. The company reported global revenues rose 26% year over year to $903 million, one of its strongest quarterly increases to date. revenue increased by 51% in the US market. Klarna expects another record quarter during the holiday season, with revenue expected to exceed $1 billion.

The company has 114 million active consumers, with 27 million new active users in the previous three months. However, while Klarna is attracting more customers, the company’s average revenue per user has fallen by about 10%.

Klarna’s actual loan losses improved slightly year over year, confirming that consumers are still paying on time.

Sales of Klarna’s new Fair finance loan product, which allows users to pay over several months with interest, are up 244% on last year. But that rapid growth comes with some short-term accounting impacts that make the company’s reported $95 million loss look worse on paper than it actually is, according to Siemiatkowski. Klarna has to immediately set aside money to cover potential loan losses, but only about 30% of income from those loans shows up in the same period, he said. Revenue comes later.

Klarna CEO Sebastian Siemiatkowski stands in front of the New York Stock Exchange on September 9, 2025, ahead of Klarna’s IPO. (Klarna)

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After accounting for actual credit losses, Klarna’s transaction revenue increased 25% in the third quarter. It expects about $100 million in additional revenue from transactions in the fourth quarter as revenue continues to grow.

Meanwhile, Klarna’s first debit card, according to Siemiatkowski, has become a bright spot with more than 4 million US consumers signed up since its launch in July.

Siemiatkovsky said the company designed a debit card that allows people to tap credit when they choose, rather than being pushed to it as with a traditional credit card, an approach he believes resonates with consumers. The company is also rolling out credit card-style rewards to go along with that.

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Klarna’s first Klarna debit card, according to CEO Sebastian Siemiatkowski, has become a flashpoint with more than 4 million U.S. consumers signed up since its launch in July. (Jonas Falsberg/Image Alliance via Getty Images/Getty Images)

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“People aren’t used to seeing this type of credit card like rewards on a debit card,” he said. “I think this is kind of the next kick in the pants that seems very exciting, and people seem to be responding very well as well.”