A year ago, the “buy now, pay later” financing company Klarna stopped hiring new employees. Now Klarna is incentivizing its remaining employees to stay, and work harder, by promising higher pay related to AI improvements.
“By not hiring, we’re simply shrinking,” Klarna CEO Sebastian Siemiatkowski explained in an interview with Bloomberg on Thursday. 1,000 people have left Klarna since its hiring freeze started last year, leaving 3,500 workers behind.
Siemiatkowski has told employees that as the company’s salary costs decrease, and as its productivity goes up thanks to AI, workers will see their salaries increase more frequently.
Related: Klarna Says Its AI Assistant Does the Work of 700 People. The Company
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