Klarna is taking a step back from its aggressive AI-driven workforce reduction strategy, with CEO Sebastian Siemiatkowski now emphasizing the renewed importance of human customer service. After previously boasting that the company’s AI assistant had taken over the work of 700 employees, Klarna had reduced its headcount from 5,000 to 3,800 and aimed to cut even further to 2,000 — all in the name of AI efficiency.
But in a recent interview with Bloomberg, Siemiatkowski admitted the approach may have gone too far. “As cost unfortunately seems to have been a too predominant evaluation factor when organising this, what you end up having is lower quality,” he said. “Really investing in the quality of the human support is the way of the future for us.”
In a move that contrasts with its previous automation-heavy stance, Klarna is now actively hiring customer service representatives. The company is testing a new remote work model in what Siemiatkowski calls an “Uber-type of setup,” allowing staff to provide customer support from home.
The shift marks a notable change in Klarna’s outlook, where AI is no longer seen as a replacement for human interaction but rather a complement to it. “From a brand perspective, a company perspective, I just think it’s so critical that you are clear to your customer that there will be always a human if you want,” the CEO added.
The pivot underscores a growing recognition among tech-driven companies that human connection remains vital in delivering quality customer service, especially in sectors built on trust like financial services.