Back to feeds

Klarna Stopped Hiring Humans A Year Ago Because Of AI By Applyly December 16, 2024 Klarna, a Swedish fintech giant, has reshaped its workforce strategy, leveraging artificial intelligence (AI) to replace traditional roles. Over the past year, Klarna’s CEO Sebastian Siemiatkowski has revealed bold measures, resulting in no new hires and a gradual reduction in its human workforce. Klarna Stopped Hiring Humans A Year Ago Because Of AI. This dramatic shift showcases the growing influence of AI in white-collar industries. AI Driving Workforce Reduction Klarna has also decided to cease employing humans as AI’s productivity gradually increases. During his speech Siemiatkowski underlined that AI can currently offer solutions for many activities that were previously made by a person. It set off 1000 employees and this makes the number to be 3500 from 4500 in one year. This reduction happened over the years due to attrition as people take an average five-year stint at Klarna. Without a possibility of new hires, Klarna ‘s workforce reduces by 20% every year. Despite fewer employees, Klarna has maintained its productivity. This success stems from AI deployment across key operations, such as customer support. In March, Klarna introduced an AI assistant handling tasks previously performed by 700 employees. The assistant cut query response times from 11 minutes to 2 minutes, improving efficiency and reducing repeat queries by 25%. Upside for Remaining Employees Interestingly, Klarna’s use of AI benefits its remaining workforce. Siemiatkowski outlined how cost savings from AI are being redirected to increase employee salaries. “The total salary cost of Klarna is shrinking, but part of the gains will show in employees’ paychecks,” he explained. This model has motivated Klarna employees to embrace AI in their roles. By deploying AI tools to improve efficiency, workers see direct financial rewards in higher salaries and equity compensation. This innovative approach highlights how AI adoption can balance workforce reductions with enhanced benefits for those who remain.