Klarna’s CEO, Sebastian Siemiatkowski, recently announced that the Swedish fintech company is implementing a partial hiring freeze, limiting new hires to the engineering department. The change comes as a result of the potential value offered by AI-powered tools such as ChatGPT. Siemiatkowski expressed concerns about AI posing a threat to many jobs in the economy and acknowledged that the company will experience a reduction in staff over time due to natural attrition.
Notably, the company had previously laid off about 10% of its staff in May and chose to deliver the news to employees through a pre-recorded message. Although Klarna’s representatives have not commented on the recent hiring freeze, the company’s approach reflects a broader trend in the industry. As AI-powered productivity tools become more prevalent, workers face the possibility of being replaced by automation.
On the other hand, AI technology has shown potential in boosting worker productivity, especially for admin-heavy tasks, which can result in cost-savings for companies. Several CEOs have already embraced AI as a means of reducing headcount while boosting employee efficiency. Additionally, companies like AT&T have developed AI tools to support their workforce, with specific applications aimed at coders and software developers. As AI technology continues to advance, it presents both opportunities and challenges for the future of the workforce.
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