Klarna’s CEO shares Dario Amodei’s perspective, predicting that by 2030, his company’s office staff will decrease by about 33%.

AI’s Impact on White-Collar Employment: Klarna’s Approach

As artificial intelligence increasingly threatens traditional office roles, Klarna’s CEO, Sebastian Siemiatkowski, is openly sharing how his company is reducing its staff numbers as automation advances.

According to a recent report, around 40% of businesses anticipate downsizing as AI takes over more tasks, though the exact scale remains uncertain. Siemiatkowski predicts Klarna’s headcount will drop from 3,000 to under 2,000 by 2030. However, he clarified on the “20 VC” podcast that this reduction will not involve layoffs.

Instead, Klarna plans to rely on natural turnover, with about 20% of employees leaving each year. On average, staff members stay with the company for five years before moving on.

“I’ve witnessed how quickly AI is progressing, and I’m confident that our current team can handle all upcoming projects,” Siemiatkowski explained.

AI Integration and Business Transformation

In early 2024, Klarna introduced a customer service chatbot powered by OpenAI, which the company claims can perform the work of 800 full-time representatives. The “buy now, pay later” service went public on the NYSE last September, raising $1.37 billion and achieving a $15 billion valuation. Since then, its share price has dropped by about 59%.

Since 2022, Klarna has reduced its workforce by more than half, shrinking from over 7,000 employees to fewer than 3,000. Siemiatkowski has previously stated that he believes AI could eventually handle every job at the company, including his own.

“I can’t say I’m thrilled about this,” he shared on X. “My work is a core part of my identity, and the thought that it could become obsolete is unsettling.”

The Changing Landscape of Work

Siemiatkowski has criticized other tech leaders for downplaying the disruptive effects of AI, suggesting that some avoid the topic to escape negative reactions. He insists on being transparent about the challenges ahead.

Dario Amodei, CEO of Anthropic, has also warned about the potential for widespread job losses, predicting that AI could eliminate half of all entry-level positions and push unemployment rates as high as 20%.

“I share Dario’s perspective and believe we’re facing a significant transformation,” Siemiatkowski said.

He also referenced Elon Musk’s vision of a future where AI and robotics make most jobs optional, potentially ushering in a new era where people have more freedom and society becomes more prosperous.

The Irreplaceable Human Element

Despite the rise of automation, Siemiatkowski believes that certain roles—especially those involving direct relationships with retail partners—will always require a human touch.

• “We have team members in Portland working with Nike,” he said.
• “Others in China are in contact with Shein.”
• “In Amsterdam, our staff collaborates with Adyen.”

He emphasized, “Maintaining genuine human connections in these partnerships is still essential.”

Although Klarna’s workforce has shrunk, the company has increased employee pay by nearly 50% thanks to higher profits, providing greater financial security for its staff even as automation advances.

“I’m optimistic by nature, but I also recognize that the near future will bring considerable upheaval,” Siemiatkowski concluded.

This article was originally published on Fortune.com.