Klarna’s CEO, Sebastian Siemiatkowski, is making a bold bet on AI. In fact, the company has decided to freeze hiring, with Siemiatkowski stating, “There will be a shrinking of the company,” adding that apart from engineers, they are not currently bringing in new talent.

While the company had laid off 10% of its staff last May due to economic downturn, Klarna is now taking a different approach. Rather than letting go of more employees, the company has opted to rely more on AI to handle tasks previously managed by humans.

AI Replacing Jobs in Various Industries

Tools like ChatGPT are fueling concerns about job displacement due to increased automation. However, we are witnessing a shift towards widespread automation, with companies like IBM considering hiring freezes and the elimination of roles that can be automated using AI.

Siemiatkowski’s plan to reshape Klarna around AI is yet another example of businesses being drawn to the efficiency offered by technology. According to him, “Things that previously took people a lot of time can be done much faster and much shorter, and we need fewer people to do the same thing.”

Siemiatkowski didn’t specify which roles might be replaced by AI but expressed the hope of integrating more consumer-facing AI features, transforming Klarna into a “personal finance assistant.”

It’s evident that AI is reshaping the employment landscape, and Klarna’s stance is a part of this ever-evolving transformation.

Written by Cecily Mauran, Tech Reporter at Mashable


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