Week 4, January 2025: Klarna's AI Gamble and Workday's 1,750

Klarna reveals AI replaced 700 agents as headcount halves. Workday cuts 1,750 citing AI demand. Shopify goes AI-first.

This Week in AI Cuts

Klarna: From 7,000 to 3,000

The biggest story: Klarna CEO Sebastian Simonsson confirmed the company went from 7,000 to roughly 3,000 employees, with AI replacing 700 customer service agents alone. His quote — "AI can already do all of our jobs" — went viral.

The catch: reports emerged of quality issues with AI customer service, and some human agents had to be rehired. A cautionary tale for the AI-first approach.

Workday Cuts 1,750

Enterprise HR software maker Workday cut 1,750 positions (8.5% of workforce). CEO Eschenbach cited AI demand as the driver. The irony of an HR platform laying off its own people wasn't lost on anyone.

Shopify's AI Memo

CEO Tobi Lütke's internal memo leaked: teams must prove AI can't do a task before requesting new hires. Not a layoff per se, but a hiring freeze with AI as the gatekeeper.

Mastercard: 1,400

Mastercard quietly cut ~1,400 roles amid AI investment in fraud detection and payment automation.

This Week's Tally

~6,000+ jobs cut with AI attribution this week alone. January 2025 is on pace to exceed any single month in 2024.