Sebastian Siemiatkowski, CEO of the popular buy now, pay later service Klarna, has sparked debate with a bold claim: artificial intelligence (AI) can now perform almost all the tasks traditionally done by human employees. Speaking to Bloomberg TV, he explained how the rapid progress of AI is changing the way businesses operate, raising questions about the future of jobs in a world where automation takes the lead.
Klarna has taken a unique approach to reducing its workforce without layoffs. The company stopped hiring new employees a year ago, resulting in a gradual reduction of its team. The number of employees has dropped from 4,500 to 3,500, largely due to a 20 percent annual attrition rate, a common trend at technology companies. Siemiatkowski explained that instead of replacing departing employees, Klarna is using AI and automation to fill the gaps.
“We have a natural attrition like all technology companies. People stay for about five years, so 20 percent leave each year. By not hiring, we are simply downsizing,” he said.
Higher salaries for remaining employees
Although Klarna’s workforce is shrinking, the company is not cutting salaries. Siemiatkowski suggested that savings from downsizing could allow for increased salaries for those still on the payroll. Although Klarna’s website still lists some vacancies, these are limited to essential positions, particularly in engineering, reflecting a shift in hiring priorities across the tech industry.
Klarna is not the only one that is betting heavily on automation. IBM CEO Arvind Krishna recently said that AI could replace certain jobs within five years, especially in departments such as Human Resources. This trend signals a broader shift, as companies across industries are exploring how AI can streamline operations and reshape their workforces.
Many technology companies, including giants such as Google, Amazon, Meta and others, have also significantly reduced their workforce in recent years. Most big tech companies did not specifically mention AI as the reason for the reduction, but the general trend shows how AI is increasing the productivity of employees left without an increase in headcount.
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