Klarna Brings Back Human Customer Service After AI Cuts Cost $40 Billion in Value

Klarna Reconsiders AI Job Cuts After Customer Service Quality Drops

Klarna’s CEO, Sebastian Siemiatkowski, recently announced a shift in strategy after the company’s AI-driven layoffs of 700 customer service employees. The fintech firm initially replaced these workers with artificial intelligence following a steep decline in its valuation—from a peak of $45.6 billion in 2021 to $6.7 billion today.

However, Siemiatkowski has acknowledged that this move led to a noticeable drop in customer service quality. He stated that cutting costs by prioritizing AI over human support resulted in a poorer experience for customers.

Bringing Humans Back to Customer Support

To address these issues, Klarna is launching a new hiring pilot focused on rebuilding its human customer service team. The plan involves recruiting remote workers in an “Uber-type setup,” who will eventually replace the thousands of outsourced agents currently handling customer inquiries.

So far, only two employees have started under this pilot program, but the CEO emphasized the importance of always providing customers with access to a human agent if they want one. This shift signals Klarna’s renewed commitment to investing in quality human support as a core part of its customer experience.

Balancing AI and Human Support

While Klarna is bringing back human agents, it will continue to use AI for improving software efficiency and automating other internal processes. The company’s approach is now more balanced, combining AI tools with human interaction to maintain service quality.

The new roles Klarna plans to offer will target people from rural areas, students, and passionate users of the platform who are interested in working for the company. This approach could provide flexible job opportunities and improve support accessibility.

What Customer Support Professionals Can Learn

• AI can reduce costs but risks impacting service quality. Human empathy and problem-solving remain critical in customer support.
• Remote, flexible work models can attract diverse talent. Klarna’s “Uber-type” setup shows experimentation with new staffing models.
• Blending AI with human agents is essential. Automation should assist rather than fully replace customer-facing roles.

For customer support professionals, this development highlights the importance of adapting to hybrid models where AI tools support—but don’t replace—the human touch. Learning how to work alongside AI can be a valuable skill in today’s job market.

If you want to stay ahead in AI-powered customer support, consider exploring AI courses tailored for customer service roles. These can help you understand how to use AI tools effectively while maintaining high-quality customer interactions.