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Sebastian Siemiatkowski, the CEO of Klarna, has attributed the company’s hiring freeze to the transformative impact of artificial intelligence on workplace productivity. Despite this stance, Klarna continues to advertise various open roles, prompting criticism and raising questions about its hiring policies.
The Swedish fintech company has significantly reduced its workforce over the past year, dropping from 5,000 employees to approximately 3,800. Siemiatkowski explained that Klarna is not actively laying off employees but is instead allowing its workforce to shrink through natural attrition. “We are not currently hiring, except for engineering roles,” the CEO said, emphasizing that AI tools like ChatGPT have allowed the company to maintain high efficiency with fewer staff.
AI’s Role in Reshaping Klarna’s Workforce
Klarna’s reliance on AI has been a game-changer for its operations. For example, the company uses AI-powered virtual assistants to respond to customer inquiries in under two minutes—a process that previously took human agents 11 minutes on average. According to Siemiatkowski, this system performs the equivalent workload of 700 human employees. This leap in efficiency has allowed Klarna to boost its revenue per employee by an impressive 73% year-over-year .
The CEO predicts that the company’s workforce could eventually shrink further to around 2,000 employees while maintaining or increasing its operational capacity. “We’re doing much more with less,” Siemiatkowski remarked in a recent interview. However, this strategy has not been without controversy, as many have pointed out inconsistencies between the company’s hiring freeze and the open positions still being advertised.
A Broader Trend in Tech
Klarna’s AI-driven transition is part of a larger trend in the tech industry. Companies like IBM and Dropbox have also reduced staff or paused hiring due to the efficiencies offered by AI. IBM’s CEO recently announced a hiring freeze for roles that could be automated, while Dropbox cited AI as a key factor in a 16% workforce reduction earlier this year.
However, critics argue that this wave of AI adoption is exacerbating fears about job security across industries. While proponents of AI, including Siemiatkowski, see it as a tool for boosting productivity, others worry about the long-term impact on employment. A recent report by the World Economic Forum suggested that AI could both displace and create jobs, with a net impact that remains uncertain .
Transparency and IPO Speculation
The apparent contradiction between Klarna’s hiring freeze and its open job postings has led to scrutiny from employees and industry observers. Some speculate that the company’s workforce strategy could be linked to preparations for a potential U.S. IPO. Klarna’s valuation has rebounded to $7 billion following a difficult period of losses in 2022, positioning the company for a possible public offering in 2024 .
As Klarna continues to adapt to an AI-driven future, the fintech giant’s policies will likely remain under the spotlight, offering a glimpse into the evolving relationship between technology and the modern workplace.