Klarna, a popular buy now, pay later firm, is making waves in the tech industry as it announces plans to cut almost half of its workforce in the coming years through the use of artificial intelligence (AI). The company has already reduced its staff from 5,000 to 3,800 in the past year and aims to further decrease that number to 2,000 employees by leveraging AI in marketing and customer service.
CEO Sebastian Siemiatkowski revealed that the job cuts would allow Klarna to pay its remaining workers more, but also highlighted the need for government intervention in addressing the impact of AI on jobs and society. Siemiatkowski emphasized that it is not as simple as assuming new jobs will be created in the future, especially for older individuals who may struggle to adapt to new roles like becoming influencers.
The rise of AI has sparked debates on its benefits and risks, with the International Monetary Fund (IMF) predicting that AI will impact nearly 40% of all jobs and potentially worsen overall inequality. Klarna’s decision to streamline its workforce comes as unions advocate for legislation to protect workers from mass job losses due to AI advancements.
Despite the concerns raised, Klarna remains optimistic about the potential of AI to drive efficiencies and improve profits. The company reported a 27% increase in revenue to 13.3 billion Swedish krona (£990 million), attributing its success to investments in AI technology. Siemiatkowski assured that the reduction in headcount would be achieved through natural attrition and that AI would ultimately replace the workload of departing employees.
As Klarna prepares for a stock exchange listing, its strategic focus on AI positions it favorably among investors in a market dominated by tech giants like Nvidia and Microsoft. The company’s proactive approach to embracing AI innovation underscores the evolving landscape of technology and the imperative for governments to stay ahead in regulating its impact on the workforce.
