Attrition caused the company’s staff to decline by 22%, bringing its current workforce down to roughly 3,500 employees from 4,500 last year. Klarna, a well-known “buy now, pay later” financing startup, has stopped hiring and is now using artificial intelligence (AI) to perform tasks that previously required hundreds of personnel.More than a year ago, the company chose to integrate AI across its operations instead of continuing to use it, CEO Sebastian Siemiatkowski told Bloomberg.
Due to attrition, the company’s workforce has shrunk by 22%, from 4,500 employees last year to approximately 3,500 employees now. Klarna’s growing investment in AI, which Mr. Siemiatkowski claims can handle the majority of the problems, is the main cause of this shift. An AI assistant driven by OpenAI has supplanted 700 customer service agents, making it one of the most prominent AI integrations.
Even though the headcount would be lowered, Mr. Siemiatkowski assured present employees that the company would split the productivity benefits from AI.He stated to Bloomberg, “We’re going to give some of the improvements that the efficiency that AI provides by increasing the pace at which our employees’ salaries increase.” Klarna’s transition to automation is also linked to plans for future growth. The company has covertly submitted a draft registration statement for an IPO to expand its footprint in the US.
“European bank, a bank in the US. AI has been required for the business’s running, changing stuffy places, and raising skills, in the opinion of Mr. Siemiatkowski. However, this has raised thoughts concerning the next human job, with analysts similar to McKinsey & firm warning that AI may reason millions of laborers to drop their jobs.
IBM, another major tech company, has also signaled the potential for AI to replace up to 30 percent. CEO Arvind Krishna discussed the expansion of HR staff over the next five years in a recent interview with Bloomberg. A manager to move near an office or quit it had been put into place by Mr. Krishna previously.
