Klarna’s CEO, Sebastian Siemiatkowski, recently spotlighted artificial intelligence as a transformative force reshaping the workforce.
Speaking to Bloomberg TV, Siemiatkowski claimed the fintech company had effectively halted hiring due to AI’s efficiency, reducing its employee count from 4,500 to 3,500 within a year. However, while Klarna may be scaling back, evidence suggests it hasn’t abandoned hiring altogether.
Siemiatkowski asserted, “AI can already do all of the jobs that we as humans do,” explaining that Klarna relies on natural attrition to shrink its workforce. He mentioned that 20% of employees leave annually, and the company has opted not to replace all of them. Instead, the gains from AI-driven efficiency are being directed toward increasing employee salaries, he said.
AI Doesn’t Replace All Jobs Yet
Despite these bold claims, Klarna’s hiring practices paint a more nuanced picture. The company’s careers page currently lists over 50 open roles globally, spanning engineering, policy, and global partnerships. Additionally, LinkedIn activity reveals ongoing recruitment efforts throughout 2024, including posts from recently hired employees and announcements about team expansions. Klarna’s global press lead, John Craske, clarified these discrepancies, stating that while Siemiatkowski’s remarks were “directionally true,” they were “simplified for brevity.”
Historically, Klarna hired 1,000 to 1,500 employees annually between 2019 and 2022. The current approach is more selective, focusing on essential roles, particularly in engineering, according to Craske. This reflects a broader trend across the tech sector, where companies like Meta and Amazon have reduced hiring or implemented layoffs following pandemic-era expansions.
Siemiatkowski’s enthusiasm for AI extends beyond workforce reductions. Earlier this year, he claimed that ChatGPT was performing tasks equivalent to 700 employees. Klarna has also experimented with AI-based systems, including replacing Salesforce as its CRM provider and using an AI-generated deepfake of Siemiatkowski to deliver financial results. However, AI’s adoption at Klarna doesn’t entirely eliminate the need for human expertise, as Craske noted, “Not every job can be replaced with AI today.”
The company’s focus on AI also aligns with its reported aspirations to go public. Siemiatkowski may be aiming to attract investors by highlighting Klarna’s aggressive integration of generative AI, positioning it as a forward-thinking fintech leader. Yet, as seen across industries, the transition to AI-driven operations often progresses slower than public statements suggest.
Siemiatkowski’s bold claims about AI replacing human jobs may appeal to investors eager to see efficiency gains, but they also highlight the gap between AI’s promise and its practical implementation. Klarna’s need to backfill essential roles suggests that while AI is transformative, it’s not yet a universal substitute for human skills. The challenge ahead lies in balancing innovation with the realities of workforce needs.
Featured Image courtesy of Bloomberg via Getty Images
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