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Klarna’s CEO Warns AI Job Cuts Could Trigger Recession

Klarna is shifting to a human-AI support model after cutting nearly half its staff to boost efficiency

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Sebastian Siemiatkowski thinks AI-induced job loss could cause a recession.
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Overview

  • Sebastian Siemiatkowski warned that AI-driven automation replacing white-collar roles usually triggers short-term recessions.
  • Klarna’s headcount fell from about 5,500 to 3,000 employees over two years during a hiring freeze and AI rollout.
  • The company’s OpenAI-powered assistant has performed the equivalent work of 700 full-time customer service agents since February 2024.
  • Quality issues with AI-only support led Klarna in May to resume recruiting remote customer service agents in a flexible, hybrid model.
  • Credit losses at Klarna rose 17% to $136 million last year, underscoring financial pressures linked to workforce shifts.