Klarna touts AI’s impact as company continues hiring key roles

STOCKHOLM, SWEDEN — The Swedish fintech giant Klarna finds itself in a contradictory position as CEO Sebastian Siemiatkowski touts AI’s workforce impact while the company continues to recruit human talent.
During an interview with Bloomberg TV, Siemiatkowski said that Klarna has virtually ceased hiring due to the efficiencies introduced by AI technologies.
“We stopped hiring about a year ago. We were 4,500, now we’re 3,500,” he stated, attributing the reduction to natural attrition and the decision not to replace departing employees.
Contradictions between claims and reality
Despite the CEO’s bold assertions about AI’s capabilities in reducing workforce requirements, evidence suggests Klarna is still recruiting. The company’s job page lists over 50 positions globally, and throughout 2024, various Klarna managers have discussed hiring efforts on social media platforms like LinkedIn.
Additionally, some new hires have been reported in critical areas such as policy, software engineering, and global partnerships.
Klarna’s global press lead, John Craske, offered a clarification in response to the CEO’s comments, indicating that while the overall workforce expansion has halted, the company continues to fill essential roles, primarily in engineering.
“When you look at it historically, we were hiring between one to one and a half thousand people a year from 2019 to 2022,” Craske told TechCrunch. “Now, we’re not actively recruiting to expand the workforce but only backfilling some essential roles, predominantly engineering.”
Broader context of AI integration in business
While Klarna utilizes AI to streamline operations and maintain its workforce at 2021 levels, the broader tech industry shows a more cautious approach to AI adoption. Companies like Meta and Amazon have also scaled back on workforce expansion, a trend accelerated by the economic uncertainties post-pandemic.
Moreover, with Klarna preparing for a potential IPO, Siemiatkowski’s promotion of AI might be part of a strategy to attract investors by showcasing a forward-thinking, technologically adept company. However, across the tech sector, the reality of AI integration often lags behind the enthusiastic projections of business leaders.