Klarna CEO warns AI could trigger a recession by slashing white-collar jobs
Swedish payments giant Klarna is sounding the alarm on AI’s impact on jobs and the economy. CEO Sebastian Siemiatkowski told The Times Tech podcast that AI-driven layoffs in white-collar work "usually leads to at least a recession in the short term."
Siemiatkowski didn’t sugarcoat it: 
"Unfortunately, I don’t see how we could avoid that, with what’s happening from a technology perspective."
The company has already cut its staff nearly in half over two years — from around 5,500 to 3,000 — thanks to AI efficiency gains. Klarna’s OpenAI-powered assistant replaced 700 customer service agents as of February 2024. They’ve also had a hiring freeze since 2023.
But the CEO admitted his AI push might have gone too far. In May, he said Klarna plans to hire again to ensure there’s "always a human if you want."
"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," Siemiatkowski explained.
He accused many tech CEOs of downplaying AI’s job consequences and said he wants to be upfront so society can prepare.
Anthropic’s leadership shares his concern. CEO Dario Amodei recently predicted AI could wipe out 50% of entry-level white-collar jobs within five years.
"We, as the producers of this technology, have a duty and an obligation to be honest about what is coming," Amodei said. "I don’t think this is on people’s radar."
Anthropic CPO Mike Krieger also prefers hiring experienced engineers who can use AI tools, seeing AI as a chance for humans to tackle "better and more fulfilling work."
"Humans… should focus on ‘coming up with the right ideas, doing the right user interaction design, figuring out how to delegate work correctly, and then figuring out how to review things at scale,’" Krieger said.
