Klarna CEO Sebastian Siemiatkowski is heavily investing in AI, leading to a hiring freeze. He told “The Telegraph” that the company will undergo downsizing. Currently, Klarna is not hiring new staff, with the exception of engineers. Last May, the fintech company laid off 10% of its workforce amid an economic downturn in the tech industry.
This time, however, Klarna plans no layoffs. Instead, the company is pausing active recruitment in anticipation that AI can take over many tasks previously done by humans. Companies like IBM are also planning hiring freezes or eliminating roles replaced by AI. Siemiatkowski aims to develop more consumer-focused AI features to transform Klarna into a “personal finance assistant.”
The use of AI-based tools like ChatGPT holds potential for productivity gains but also risks job loss. Some CEOs believe AI tools will enhance employee productivity and lead to a reduced workforce. Other companies, including AT&T, have developed their own AI tools to assist employees in their work.
While some believe AI will replace jobs, others think it will make us more productive in our existing work or even create more jobs. Major technology companies worldwide are implementing hiring freezes or laying off employees for reasons related to AI or other issues.