Klarna, a popular buy now, pay later firm, is making waves in the industry as it announces plans to cut almost half of its employees in the coming years through the use of artificial intelligence (AI). The company has already reduced its workforce from 5,000 to 3,800 in the past year and aims to further decrease that number to 2,000 employees by leveraging AI in marketing and customer service.
CEO Sebastian Siemiatkowski revealed to the BBC that these job cuts would allow Klarna to pay its remaining workers more, but also highlighted the need for government intervention in addressing the impact of AI on jobs and society. Siemiatkowski emphasized that it is not as simple as assuming new jobs will be created in the future, especially for older individuals who may struggle to adapt to new roles like becoming influencers.
The rise of AI has sparked debates on its benefits and risks, with the International Monetary Fund (IMF) predicting that AI will affect nearly 40% of all jobs and potentially worsen overall inequality. Klarna’s decision to implement AI-driven efficiencies comes as unions advocate for legislation to protect workers from mass job losses due to automation.
Despite the concerns surrounding job security, Siemiatkowski believes that AI can be a positive development for individuals, leading to higher pay and improved efficiencies. Klarna’s investment in AI has already shown results, with the company reporting a 27% increase in revenue to 13.3 billion Swedish krona.
As Klarna prepares for a potential stock exchange listing, its focus on AI may attract investors looking for companies at the forefront of technological innovation. Siemiatkowski stressed the importance of Europe and democracies leading the evolution of AI, signaling that progress in this area is inevitable for companies like Klarna.
Overall, Klarna’s strategic shift towards AI-driven efficiencies reflects a broader trend in the industry, where firms are increasingly turning to automation to streamline operations and drive growth. The impact of AI on jobs and society remains a pressing issue that requires careful consideration and proactive measures to support those affected by technological advancements.
