Klarna CEO Sebastian Siemiatkowski has made a bold declaration about artificial intelligence’s capabilities, stating in a Bloomberg TV interview that he believes “AI can already do all of the jobs that we as humans do.” The CEO of the popular “buy now, pay later” fintech company emphasized that implementation is the only remaining challenge, saying “it’s just a question of how we apply it and use it.”
Klarna has been aggressively implementing AI-driven workforce reduction strategies, with Siemiatkowski revealing that the company stopped hiring approximately a year ago. The fintech giant, which connects with more than 575,000 retailers globally, has shrunk its workforce from 4,500 employees to 3,500 through natural attrition alone. Rather than replacing departing employees, Klarna has allowed its headcount to decline by roughly 1,000 positions over the past year.
The CEO explained the company’s strategic approach to workforce reduction: “We have a natural attrition like every tech company. People stay about five years, so 20% leave every year. By not hiring, we’re simply shrinking, right?” This calculated approach allows Klarna to reduce its workforce without conducting traditional layoffs, instead relying on voluntary departures and retirement.
Siemiatkowski promised employees that cost savings from AI implementation would translate to higher individual compensation. He stated that Klarna had communicated to staff that “what’s going to happen is the total salary cost of Klarna is going to shrink, but part of the gain of that is going to be seen in your paycheck.” This suggests the company plans to redistribute some of the savings from reduced headcount to remaining employees.
However, Klarna hasn’t completely frozen all hiring. A company spokesperson clarified to Business Insider that while the company isn’t “actively recruiting” to expand its workforce, it is backfilling “some essential roles,” primarily in engineering positions. The company’s website still advertises open positions at the time of reporting.
This development comes amid growing concerns about AI’s impact on employment. A 2023 McKinsey & Company report estimated that 12 million American workers would need to change occupations by 2030 as AI technology continues to advance and reshape the workplace landscape.
Key Quotes
I think what we’ve done internally hasn’t been reported as widely. We stopped hiring about a year ago, so we were 4,500, and now we’re 3,500.
Klarna CEO Sebastian Siemiatkowski revealed the extent of the company’s AI-driven workforce reduction, showing how the fintech company eliminated 1,000 positions through attrition rather than layoffs.
AI can already do all of the jobs that we as humans do. It’s just a question of how we apply it and use it.
Siemiatkowski made this sweeping statement about AI capabilities during a Bloomberg TV interview, representing one of the most bullish assessments of AI’s current abilities from a major tech CEO.
What’s going to happen is the total salary cost of Klarna is going to shrink, but part of the gain of that is going to be seen in your paycheck.
The CEO explained how Klarna plans to compensate remaining employees, suggesting that cost savings from AI implementation would be partially redistributed to workers who retain their positions.
Our Take
Siemiatkowski’s comments represent a watershed moment in the AI employment debate, moving from hypothetical scenarios to concrete corporate action. What’s particularly striking is the stealth nature of this workforce transformation—by using natural attrition, Klarna avoids negative headlines about mass layoffs while achieving the same result. This strategy could become a blueprint for other companies seeking to implement AI while minimizing public backlash.
The promise of higher salaries for remaining employees is both innovative and troubling. While it may ease internal resistance to AI adoption, it creates a stark divide between those whose jobs can be automated and those who remain valuable. The fact that Klarna is still hiring engineers suggests that AI implementation itself requires human expertise, at least for now. This case study will likely be examined closely by executives, policymakers, and labor advocates as a preview of AI’s real-world employment impact.
Why This Matters
Klarna’s aggressive AI-driven workforce strategy represents one of the most significant real-world examples of artificial intelligence displacing human workers at scale. Unlike theoretical discussions about AI’s potential impact, this case demonstrates how a major fintech company with over half a million retail partnerships is actively choosing AI over human employees. The CEO’s unequivocal statement that AI can perform all human jobs signals a fundamental shift in how technology executives view the human workforce.
This story has profound implications for the broader tech industry and economy. If other companies follow Klarna’s model of natural attrition without replacement, millions of jobs could disappear without traditional layoff announcements, making the employment impact of AI less visible but equally devastating. The McKinsey projection of 12 million American workers needing to change careers by 2030 may prove conservative if Klarna’s approach becomes widespread. The promise of higher salaries for remaining employees creates a two-tier system where AI adoption benefits those who keep their jobs while displacing others entirely, raising critical questions about economic inequality and workforce transition support.
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Source: https://www.businessinsider.com/klarna-ceo-sebastian-siemiatkowski-ai-jobs-2024-12