Klarna CEO says the company ceased employing a year ago because AI ‘can already do all of the tasks’.

“But let us be clear: this depends purely on the way these come to be used and utilized by the organizations and the individuals,” he emphasized. Known for its famous “buy now, pay later” payment service, Klarna under Siemiatkowski boasts a wide network of more than 575,000 retailers.

However, with this growing focus on AI, many are becoming nervous about employment and overall work environment changes. CEO Sebastian Siemiatkowski expressed this view in a recent interview with Bloomberg TV: AI will perform any jobs currently done by humans.

From a study published by McKinsey and Company in 2023, it was estimated that around 12 million American employees by the year 2030 may change occupations due to developments in AI technology. That is the reason for which Klarna has instituted a hiring freeze that started last year, leading to a reduction of employees to 3,500 instead of 4,500. The company communicated that to continue with the normal monthly salary expenses for all the employees left, some savings will reflect in their salaries.

Although Klarna’s website presents several job adverts, the company is not an active recruiter. The company is only filling the most critical positions available, especially in engineering. This illustrates how Klarna is managing the impact of all the changes AI and the job market have undergone.

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