Klarna CEO Sebastian Siemiatkowski claims AI can now perform all tasks, stops hiring humans

Klarna, a leading fintech company, is making waves after its CEO, Sebastian Siemiatkowski, stated that artificial intelligence (AI) is now capable of performing nearly all tasks that were once handled by human employees. In an interview with Bloomberg TV, Siemiatkowski discussed the rapid advancement of AI and its growing role in the workforce, raising important questions about the future of employment.

Siemiatkowski revealed that Klarna, known for its "buy now, pay later" services, has not hired any new staff in the past year, leading to a natural reduction in its workforce. The company, which once employed 4,500 people, now has 3,500 employees. This reduction, according to Siemiatkowski, was a result of a typical 20% annual attrition rate seen in tech firms, meaning that about 20% of employees leave every year. Rather than hiring replacements, Klarna chose to let the workforce shrink. “We have a natural attrition like every tech company. People stay for about five years, so 20 per cent leave every year. By not hiring, we are simply shrinking,” he explained.

Despite the workforce reduction, Siemiatkowski assured that the current employees’ salaries would not be negatively impacted. He noted that as the company’s salary costs decrease due to fewer employees, the savings could lead to higher pay for those who remain.


The move by Klarna comes at a time when the role of AI in the workplace is under growing scrutiny. A 2023 report from McKinsey & Company predicted that millions of workers might be forced to transition into new roles by 2030 as AI continues to evolve. Klarna’s approach of not actively recruiting new staff has been seen as an example of how AI is already reshaping the job market.

While Klarna’s website still lists some job openings, a company spokesperson clarified that the company is not expanding but hiring for essential roles, particularly in engineering. This aligns with the trend of tech companies adjusting their workforce strategies as AI becomes more integrated into their operations.

This shift in workforce dynamics is not unique to Klarna. Last year, IBM’s CEO, Arvind Krishna, also highlighted the potential for AI to replace certain jobs in the next five years. In an interview with Bloomberg, Krishna predicted that up to 30% of Human Resources jobs could be replaced by AI and automation within that period. "I could easily see 30 per cent of that getting replaced by AI and automation over a five-year period,” he said.

As AI continues to advance, companies like Klarna and IBM are setting a precedent for how automation could reshape industries and the workforce in the coming years.