The chief executive of Klarna has said that artificial intelligence (AI) has allowed the buy now, pay later company to halve its workforce and pause recruitment, predicting that the technology will bring an end to “excessive profits” in the banking sector. Sebastian Siemiatkowski, co-founder and CEO, described his comments as an attempt to be more “honest” than others in similar positions.
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Speaking to Bloomberg Television, Mr Siemiatkowski said: “I feel there is a massive shift coming to knowledge work – and it’s not just in banking, it’s in society at large.” He added that while new jobs will emerge in the future, there could be a short-term impact on roles such as translators, which he said can largely be performed by AI.
Klarna has reduced its workforce from 7,400 to around 3,000 employees while simultaneously growing revenues and its customer base. “We’re simply not recruiting, which allows us to avoid lay-offs,” Mr Siemiatkowski said. He added that many of the savings from payroll have been reinvested in accelerating staff compensation, providing employees with significant benefits from the internal use of AI.
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Despite the benefits, Mr Siemiatkowski acknowledged broader societal concerns about AI, particularly in non-democratic countries. However, he argued that overall it is positive for society, helping reduce excess profits in markets that have historically functioned poorly. Klarna, which floated on the New York Stock Exchange last month, serves around 111 million customers worldwide, with its payment options available at retailers including John Lewis, Asos, Argos, Ticketmaster and Booking.com. The remarks come as the Bank of England warns of a growing risk that high valuations in AI tech firms could lead to a “sharp market correction.”
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