Klarna, a popular fintech company known for its “buy now, pay later” services, is making headlines after its CEO Sebastian Siemiatkowski claimed that artificial intelligence (AI) is now used in tasks traditionally handled by human employees. Capable of performing almost all tasks.

This is a huge claim and raises new questions about the future of human employment. In an interview with Bloomberg TV, Siemiatkowski suggested that AI has advanced to the point where it can manage multiple roles within a company.

Siemiatkowski revealed that Klarna had stopped hiring new employees about a year ago, leading to a gradual reduction in its workforce. The company, which previously had 4,500 employees, now has 3,500. According to the CEO, the reduction was a natural result of the typical 20 percent annual attrition rate at tech companies. Instead of hiring replacements, Klarna opted to reduce the workforce while supporting automation and AI.

“Like every tech company, we have natural attrition. People stay about five years, so 20 percent leave every year. By not hiring, we’re just shrinking,” he said. “

Despite this change, Siemiatkowski suggested that salaries for current employees will not be negatively impacted. In fact, he said that as Klarna’s overall salary costs are reduced due to fewer employees, the savings could translate into increased pay for those who remain.

This news comes amid a growing global discussion about the impact of AI on jobs. A 2023 report from McKinsey & Company predicts that as AI continues to advance, millions of workers could be forced to shift into new roles by 2030. Klarna’s decision to not actively recruit new employees is seen as a solid example of how AI is already reshaping the modern workplace.

While Klarna’s website still lists some job vacancies, a company spokesperson told Business Insider that they are not expanding but only hiring for essential roles, especially in engineering. This suggests that tech companies are gradually adjusting their workforce strategies as AI is integrated into their operations over time.

Additionally, just last year, IBM – an American tech company – also showed its support for AI and automation. The company’s CEO Arvind Krishna said in an interview with Bloomberg that some jobs could be replaced by AI in the next five years. He also mentioned that human resources (HR) could be one of the departments that could potentially be replaced by AI.

“I can easily see 30 percent being replaced by AI and automation in a five-year period,” he said.