SUCCESS
Klarna’s AI Assistant Is Doing The Job Of 700 Workers, Company Says
The challenge for high-flying tech unicorns is how to keep growing in a belt-tightening environment, due to inflation and uncertain economic conditions. It’s even harder when the tech darlings don’t generate sufficient profits to maintain their market capitalization. The likelihood of investors continually funding companies amid high interest rates and economic headwinds dwindles, as there is too much risk.
When tech layoffs started taking off in mid-2022, Klarna, a Sweden-based fintech company in the buy-now-pay-later space, announced plans to lay off about 10% of its global workforce.
Fast-forward to the ascension of artificial intelligence and a tech push to make companies leaner and more efficient, Klarna implemented an AI assistant that is now handling the workload equivalent to 700 full-time staff members, according to a recent statement by the company.
Latest Developments In The Job Market, Tech And The U.S. Economy
What’s Going On With All The Layoffs—How Managers Can Do A Better Job When Sharing The Bad News
The steady stream of layoffs following the Great Resignation has spilled into 2024 with about 186 tech companies cutting over 49,386 jobs this year, according to Layoffs.fyi. Although the CEO outlook for 2024 remains positive about the deployment of artificial intelligence, business transformations and mitigating expenses, it has come at the cost of the workforce in the United States.
Although employers are making relatively smaller cuts this year by staggering them, employees have been impacted across a wide range of sectors, including technology, gaming, finance, retail and media. Despite their optimism, C-suite executives—with pressure from investors—are being cautious and remaining cost-conscious.
Companies were too ebullient and overhired throughout the pandemic and subsequently faced the consequences once the U.S. economy shifted out of their favor, with rising interest rates. The integration of AI in the workplace has enabled executives to downsize in certain areas and redeploy the savings toward investment into the fast-growing technology.
The challenge remains how companies can empathetically and respectfully conduct layoffs during these uncertain times.
Here’s Why The Traditional Office Corporate Culture Is Over
The once-standard office culture that epitomized Corporate America for decades is slowly withering away. The formerly traditional corporate culture was characterized by working in physical office spaces within large skyscraper buildings.
Working in metropolitan areas, like New York or San Francisco, was a thrilling experience. Employees would accept the drudgery of the big cities because they loved the ability to enjoy after-work social engagements with co-workers. There would be outings to the local bars, restaurants, attending concerts and sporting events. However, daily in-person interactions and after-work socializing are fast becoming things of the past.
The United States workforce is in the midst of a seismic shift, as remote and hybrid work styles have impacted office culture. New forms of connection and collaboration have emerged that focus on the importance of flexibility, mental health and emotional well-being, along with a more holistic approach to work.
With employees physically dispersed across the U.S. and abroad, spontaneous, serendipitous interactions, team building, birthday celebrations and informal social gatherings have faded away.
As businesses pivoted toward a remote environment, more emphasis was put on employee engagement through Zoom calls, Slack channels and virtual team-building events and activities.
The growing desire for work-life balance has made people reconsider their priorities. Workers are resolute about establishing boundaries, so that they can live more fulfilling lives. For many people, wasting hours commuting to and from the office and getting trapped in long, tedious meetings are now non-negotiable items. People would rather quit and find another job than endure the never-ending encroachment made on their precious time.
No More Excuses
"It was easier to do this in the past when everything was less expensive."
While economic conditions may change, adaptability and innovation are key to navigating challenges. Instead of dwelling on past conditions, focus on finding creative solutions and leveraging current resources and opportunities, instead of complaining.
"I'm too old or too young to do it."
Age should not be a barrier to pursuing your goals. Both young and older individuals have unique perspectives and strengths that can contribute to success. Embrace your experience or youthful energy as assets in your endeavors.
"I don't have the money and right connections or didn't go to an Ivy League university."
While financial resources and connections can be beneficial, they are not the sole determinants of success. Resourcefulness, networking and continuous learning can help overcome these perceived limitations.
"I've never succeeded, so I'm afraid to try because I might fail again."
Fear of failure is common, but should not paralyze you from taking risks. Failure is a natural part of growth and learning. Each setback provides valuable lessons that can lead to future success. Reframing failure as a learning opportunity and embracing setbacks as part of the growth process can help individuals overcome this fear and take calculated risks.
"I don't know how to start a business."
Lack of knowledge or information can be a common excuse for not taking the risk of starting a business. However, there are abundant resources available to learn and get started, making this excuse easily surmountable.
Financial constraints often deter individuals from taking risks in entrepreneurship. Despite this, many successful businesses have started with minimal funding, emphasizing the importance of resourcefulness and creativity in overcoming financial barriers.
"I don't have enough time."
Busy schedules and commitments can lead individuals to use lack of time as an excuse for not pursuing the career you desire or entrepreneurial dreams. Effective time management and prioritization can help individuals carve out time for their ventures
By challenging these excuses, reframing them as opportunities for growth and focusing on developing skills, resilience and a proactive mindset, individuals can overcome self-imposed limitations and pursue their career or entrepreneurial aspirations with confidence and determination.
Other Stories
Many Gen-Z Employees Say ChatGPT Is Giving Better Career Advice Than Their Bosses
When it comes to career guidance and development, many employees feel that their managers have dropped the ball. Gen Z employees are feeling especially frustrated: 47% say they get better career advice from ChatGPT than from their human bosses, and 44% expect to quit within six months, according to a recent survey from INTOO and the Workplace Intelligence research firm.
Bitcoin Tops $67,000 As It Nears 2021 All-Time High
Bitcoin jumped to start the week, edging even closer to its all-time high after the rally took a breather over the weekend.
The flagship cryptocurrency was last higher by 7% at $67,379.86, according to Coin Metrics. Earlier, it rose to as much as $67,567.98, its highest level since November 2021, when it reached its all-time high. Ether advanced 4%, trading near January 2022 highs at $3,607.49.
Both coins are coming off their best week in almost a year — bitcoin gained about 21% and ether 16% — but paused their run over the weekend as the market digested two days of steep outflows from the Grayscale Bitcoin Trust (GBTC) that were offset by inflows into other “newborn” bitcoin exchange-traded funds.
OpenAI Signs Open Letter To Build AI Responsibly Just Days After Elon Musk Sued The Company For Putting Profit Ahead Of People
OpenAI, Salesforce and other tech companies signed an open letter highlighting a “collective responsibility” to “maximize AI’s benefits and mitigate the risks” to society, in the tech industry’s latest effort to call for building artificial intelligence responsibly.
In a post on the social media platform X, OpenAI Chief Executive Officer Sam Altman said he was “excited for the spirit of this letter,” which was started by venture capitalist Ron Conway and his firm SV Angel. Altman said progress in AI “will be one of the biggest factors in improving people’s quality of life.” Hugging Face, Scale AI and dozens of other startups and tech companies were also listed as signatories in the letter.
How To Get A Job In Tough Times: All The Advice You Need To Succeed From A Top Executive Recruiter
There’s an old saying, “Tough times make tough people.” In this book, Jack Kelly will help guide you every step of the way in your job search to ensure that you stay strong, resilient and positive, and get that great, new job.
