Klarna Stopped All Hiring a Year Ago to Replace Workers With AI, CEO Says
Dec 13, 2024 - news.bensbites.com
Klarna Group Plc has significantly reduced its workforce by 22% over the past year, bringing its headcount down to 3,500 employees. This reduction is largely attributed to natural attrition as the company has shifted its focus towards investing in artificial intelligence technologies. According to CEO Sebastian Siemiatkowski, the integration of AI has allowed Klarna to halt hiring, as the technology is now performing tasks that were previously handled by hundreds of staff members.
Currently, around 200 employees at Klarna are utilizing AI for their primary job functions. This strategic move towards AI has been a key factor in the company's operational changes, as highlighted by Siemiatkowski during an interview with Bloomberg Television in New York. The adoption of AI is part of Klarna's broader effort to enhance efficiency and streamline operations within the buy now, pay later finance sector.
Key takeaways:
Klarna Group Plc stopped hiring a year ago as it invested in artificial intelligence.
The AI technology is performing the work of hundreds of staff across the company.
The company's headcount has decreased by 22% to 3,500, mainly due to attrition.
Approximately 200 employees are now using AI for their core work.
