The purchase now, pay later agency Klarna is looking for to eliminate virtually half its workers within the coming years via efficiencies it says come up out of its funding in synthetic intelligence (AI).
The agency has already lower its workforce from 5,000 to three,800 prior to now 12 months, and needs to cut back that to 2,000 workers through the use of AI in advertising and marketing and customer support.
Boss Sebastian Siemiatkowski informed the BBC the job cuts would imply Klarna might pay its remaining employees extra.
However he mentioned the federal government wanted to consider what to do about AI, which he predicted would have “a dramatic impression” on jobs and society.
“I believe politicians already at the moment ought to contemplate whether or not there are different options of how they might assist individuals which may be efficient,” he informed the Right this moment programme, on BBC Radio 4.
He mentioned it was “too simplistic” to easily say new jobs can be created sooner or later.
“I imply, possibly you may develop into an influencer, however it’s onerous to take action if you’re 55-years-old,” he mentioned.
The current proliferation of AI has put its advantages and dangers beneath the highlight.
Earlier this 12 months, the Worldwide Financial Fund (IMF) mentioned it believed AI would impression almost 40% of all jobs, and it could “possible worsen total inequality”.
In different sectors, such because the video games business, builders have warned they’re already shedding work to AI.
Klarna – which is predicated in Sweden, and has two UK workplaces – disclosed its job-cutting plans because it introduced interim outcomes which confirmed it elevated its income by 27% to 13.3 billion Swedish krona (£990 million).
“Our confirmed scale efficiencies have been enhanced by our funding in AI, which has pushed down working bills and improved gross earnings,” it mentioned.
It comes as unions have warned of mass job losses amid the expansion of AI and are calling for laws to guard employees.
Mr Siemiatkowski mentioned Klarna would cut back its headcount via what he known as “pure attrition” – successfully a hiring freeze, the place employees aren’t changed after they go away.
Usually this implies the those who stay are left with an elevated workload.
However Mr Siemiatkowski contended that AI can be changing this work, and even claimed it was a possible “constructive growth” for some people who could also be paid extra.
Whereas he mentioned it was “essential” for presidency to think about what to do about those that misplaced their jobs, he prompt there was no “stopping progress” for corporations like his.
“It is necessary that Europe and democracies are forward within the evolution of AI,” he mentioned.
Klarna is known to be shrinking its workforce forward of a list on the inventory alternate, which has not too long ago been dominated by corporations closely investing in AI, reminiscent of Nvidia and Microsoft.
This implies Klarna being seen as an enormous proponent of the tech could make its inventory extra interesting to traders when it does finally go public.
