Photo credit: www.businessinsider.com
Klarna CEO Discusses AI’s Impact on Workforce
Sebastian Siemiatkowski, the CEO of Klarna, recently shared his insights on artificial intelligence and its role in the workforce during an interview with Bloomberg TV. His thoughts highlight a growing trend in the fintech industry regarding the capabilities of AI in potentially replacing human jobs.
Siemiatkowski expressed his belief that AI has reached a level where it can perform all functions currently undertaken by human workers. He noted, “It’s just a question of how we apply it and use it.” This sentiment underscores the vast possibilities AI presents, along with the pressing concerns regarding employment in various sectors.
Klarna, known for its “buy now, pay later” payment services, has ties with over 575,000 retailers, indicating its significance in the financial technology landscape. However, the increasing integration of AI in such systems causes apprehension about the future of jobs, particularly as a report by McKinsey & Company forecasts that 12 million American workers may need to switch occupations by 2030 due to advancements in AI technology.
Furthermore, Siemiatkowski revealed that Klarna halted its hiring process about a year ago, a move that has not been widely reported. He detailed how the company’s workforce has decreased from 4,500 to 3,500 employees, attributing this decline to natural attrition common in tech companies, where the average tenure is about five years. “By not hiring, we’re simply shrinking,” he stated.
In terms of employee compensation, Siemiatkowski mentioned that although the total salary costs are expected to decline, employees may still see some benefits reflected in their paychecks. This approach indicates a strategic balancing act between managing costs and retaining a motivated workforce.
While Klarna’s website currently lists open job positions, a spokesperson clarified to Business Insider that the company is not pursuing significant recruitment efforts. Instead, it is focused on filling essential roles, particularly in engineering, suggesting a targeted approach to workforce management within the company.
Source
www.businessinsider.com