IndiaTech

A tech company halts human hiring as its CEO claims AI can handle all tasks typically performed by employees in the office.

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Klarna, a well-known fintech company, has made headlines following a statement by its CEO, Sebastian Siemiatkowski, that artificial intelligence (AI) is now capable of handling nearly all tasks traditionally performed by human employees. The claim has raised significant questions about the future of human employment in the workplace.

It was revealed during an interview with Bloomberg TV that Klarna stopped hiring new staff about a year ago, leading to a gradual reduction in its workforce. The company’s employee count, which once stood at 4,500, has now decreased to 3,500 due to a natural attrition rate of 20 percent per year, common in tech firms. This reduction was not actively pursued but occurred as a result of the company’s decision to forego recruitment, further emphasizing its shift toward AI and automation.

Siemiatkowski stated that Klarna’s reduced workforce has not negatively impacted the salaries of remaining employees. Instead, cost savings from the smaller headcount may allow for potential pay increases for current staff.

Reports have highlighted that while some essential roles, particularly in engineering, are still being filled, Klarna is not actively expanding its workforce. A spokesperson for the company clarified to Business Insider that hiring is limited to critical positions.

This development has coincided with broader discussions about AI’s growing influence on global employment. A 2023 report by McKinsey & Company predicted that millions of workers might need to transition into new roles by 2030 as AI continues to evolve.

Similar views have been expressed by IBM, whose CEO, Arvind Krishna, suggested last year that up to 30 percent of jobs, including roles in Human Resources, could be replaced by AI and automation within five years. Krishna’s statement underscored the accelerating integration of AI into workplace operations worldwide.

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