Klarna Rebalances AI Push, Reinvests in Human Customer Support

After a major push to reduce its workforce using AI, Klarna is now reversing course. CEO Sebastian Siemiatkowski acknowledges that relying too heavily on automation has harmed service quality, reports Finextra.

Just a year ago, Klarna made headlines when Siemiatkowski praised its AI assistant for doing the work of 700 employees, helping shrink the team from 5,000 to 3,800. The goal, he said then, was to reduce staff further to around 2,000, powered by AI. But in a recent Bloomberg interview, the CEO admits the company may have leaned too far into automation. "Cost became too dominant a factor," he said. "What you end up with is lower quality."

Klarna is now reintroducing human customer service roles, including a flexible, remote “Uber-style” workforce model. “It’s essential to reassure customers that a human will always be available if they want,” Siemiatkowski emphasized.