Klarna freezes hiring because AI can do the work instead – LSB

Garima
2 Min Read


Klarna CEO Sebastian Semyatkowski is betting so much on AI that he’s imposed a hiring freeze.

“There will be a shrinking of the company,” said Siemiatkowski per Telegraph. “We’re not hiring at all right now, except for engineers.” Last May, 10 percent of the fintech company’s staff was laid off during a period of economic downturn in the tech industry.

This time, however, Klarna is not planning any layoffs. Instead, it refrains from actively recruiting with the expectation that AI can now handle many tasks that were previously performed by humans.

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Spotify will cut 17 percent of its workforce, at least 1,500 people

Klarna is not the only one replacing jobs with AI

The rise of tools like ChatGPT has created a cloud of fear and uncertainty surrounding job switching and its potential to disrupt the industry. But now we’re starting to see what widespread automation might look like.

It’s still early days for generative AI, but companies like IBM are already planning hiring freezes or eliminating roles that can be filled with AI. Siemiatkowski’s plans to build Klarna’s operations around AI is another example of businesses choosing the undeniable appeal of technological efficiency.

“Things that used to take people a long time can be done much faster and much shorter, and we need fewer people to do the same thing,” said Siemiatkowski Telegraph. “The right thing for us is to just say, ‘let’s not recruit now, let’s see how this goes.’

Siemiatkowski didn’t specify which roles could be replaced by AI, but said he hopes to build more user-centric AI features, making Klarna more of a “personal finance assistant.”

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