Charles Esther
The CEO of Swedish payments company Klarna, Sebastian Siemiatkowski, has issued a stark warning about the impact of artificial intelligence on the job market.
He believes AI will increasingly replace white-collar jobs, potentially leading to a recession in the short term.
Speaking on The Times Tech podcast, Siemiatkowski explained the implications of AI advancements on employment.
He said, “there would be an implication for white-collar jobs,” adding that such changes “usually lead to at least a recession in the short term.”
He expressed doubt about avoiding this outcome, given the rapid pace of technological change.
Klarna’s Workforce Shrinks Due to AI Efficiency Gains
Siemiatkowski has been open about how AI has helped Klarna improve efficiency, resulting in significant job reductions.
The company’s workforce has shrunk from about 5,500 employees to 3,000 over the past two years, partly due to AI-driven automation.
In February 2024, Klarna revealed that its AI assistant, powered by OpenAI technology, was performing the work equivalent to 700 full-time customer service agents.
Klarna, known for its “buy now, pay later” service, was an early partner of OpenAI and has heavily invested in integrating AI tools.
Changing Views on AI and Human Jobs
While Siemiatkowski once believed AI could replace all human jobs, he has recently moderated his stance.
At an event in May 2025 at Klarna’s Stockholm headquarters, he acknowledged that AI-driven cost-cutting in customer service had gone too far.
He announced plans to recruit more staff to ensure a human presence remains for customers who prefer it.
Siemiatkowski emphasised the importance of clarity for customers about the availability of human support.
Calls for Honesty on AI’s Impact on Jobs
Siemiatkowski criticised many tech leaders for downplaying the consequences of AI on white-collar employment.
He stated, “I don’t want to be one of them,” emphasising his desire to be transparent so society can prepare for the coming changes.
This call for honesty comes as other AI industry leaders have also raised concerns.
Industry Leaders Raise Alarm About AI Job Disruption
Anthropic, a leading AI research company, has voiced similar warnings about AI’s potential to disrupt the labour market.
Anthropic’s CEO, Dario Amodei, predicted AI could eliminate up to 50% of entry-level white-collar jobs within five years.
He stressed the responsibility of AI developers to be honest about the risks ahead.
Anthropic’s Chief Product Officer, Mike Krieger, revealed he now prefers hiring more experienced software engineers who can effectively use AI tools rather than entry-level hires.
The Silver Lining: AI Enables More Fulfilling Work
Despite the concerns, some experts see AI as an opportunity to improve job quality.
Krieger said humans should focus on “coming up with the right ideas,” user experience design, and delegating work efficiently.
He also highlighted the importance of reviewing AI-produced work at scale using analysis tools.
This shift could allow humans to concentrate on higher-level creative and strategic tasks.
Conclusion
Klarna’s CEO Sebastian Siemiatkowski has delivered a clear message about the disruptive potential of AI on white-collar jobs and the economy.
His candid warnings, echoed by other AI leaders, urge society to prepare for significant workforce changes.
While AI promises efficiency and innovation, it also demands careful management to ensure a balanced future of work.
The evolving role of humans alongside AI could lead to new forms of meaningful employment if approached wisely.
