Sebastian Siemiatkowski, CEO of Klarna, has made waves with his assertion that artificial intelligence (AI) is now capable of handling most tasks traditionally performed by human employees.
Klarna, best known for its “buy now, pay later” services, is increasingly relying on AI, fueling broader debates about the future of human employment.
Workforce Reduction Through Natural Attrition
In a recent interview with Bloomberg TV, Siemiatkowski explained that Klarna opted to halt hiring over a year ago, leading to a gradual workforce reduction.
The company’s employee count has decreased from 4,500 to 3,500, a result of its natural annual attrition rate of approximately 20%, which is common in the tech industry. Rather than resorting to layoffs, Klarna chose not to replace employees who left the company.
He described this strategy as a deliberate move toward automation and AI-driven operations. “We have a natural attrition like every tech company. People stay for about five years, so 20 percent leave every year. By not hiring, we are simply shrinking,” Siemiatkowski stated.
Financial Benefits for Remaining Employees
Siemiatkowski also noted that the decision to reduce staffing levels will not negatively affect the salaries of employees who remain. On the contrary, the company may use the financial savings from a smaller workforce to offer higher compensation to existing staff. While Klarna’s website still advertises limited job openings, these roles are primarily focused on essential positions like engineering.
Klarna’s workforce strategy aligns with a larger shift across industries as companies increasingly embrace automation and AI. For example, IBM CEO Arvind Krishna recently predicted that AI could replace certain job functions over the next five years. He specifically pointed to departments such as Human Resources (HR) as likely candidates for automation-driven restructuring.
The growing reliance on AI and automation, as highlighted by Klarna and IBM, reflects a significant transformation in how businesses manage operations. While AI brings efficiencies, its impact on employment raises important questions about the balance between technology and the human workforce.
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