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International Business Times UK
International Business Times UK
Vinay Patel

Klarna Slashed 40% of its Staff for AI — Now They're Scrambling to Rehire Humans After Customer Backlash

Klarna swapped 40% of its workforce for AI, expecting big savings. Yet, this backfired as AI couldn't handle complex customer issues, sparking widespread frustration. Now, Klarna's backtracking, and rehiring people. (Credit: X / Klarna @Klarna)

Swedish fintech giant Klarna's dramatic reversal from AI back to human employees exposes the harsh reality that artificial intelligence cannot match human capability in customer-facing roles, despite corporate promises of efficiency and cost savings.

Klarna had made headlines for this drastic move of replacing a significant portion of its workforce with artificial intelligence that led to a 40% staff reduction.

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