Sebastian Siemiatkowski, the CEO of Klarna, a leading “buy now, pay later” service, has ignited a debate with his bold statement that artificial intelligence (AI) is now capable of performing nearly all tasks typically handled by human workers. In an interview with Bloomberg TV, he explained how the rapid advancement of AI is transforming business operations and raising questions about the future of employment in an increasingly automated world.
Klarna has adopted an unconventional approach to reducing its workforce without resorting to layoffs. A year ago, the company stopped hiring new employees, which led to a gradual reduction in its team size. The employee count has decreased from 4,500 to 3,500, primarily due to a 20% annual attrition rate, common in the tech industry. Siemiatkowski clarified that instead of replacing departing employees, Klarna is utilizing AI and automation to fill the void.
“We experience natural attrition like any tech company. People stay for about five years, so 20% leave every year. By halting hiring, we’re simply shrinking,” he explained. Read more
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