A Company That Fired 700 Employees and Replaced Them with AI Admitted it was a Mistake / Are Your Employees Suffering From Boreout?

Klarna is rehiring human employees after previously replacing a significant portion of its workforce with artificial intelligence (AI)

In 2022, Klarna, a Swedish fintech company, laid off approximately 700 employees as part of a strategic move to automate operations using AI. The decision aimed to increase operational efficiency and reduce costs. By 2024, Klarna claimed that its AI systems were handling tasks equivalent to over 700 full-time agents, leading to a hiring freeze and a significant reduction in human staff. CEO Sebastian Siemiatkowski told Bloomberg he was “of the opinion that AI can already do all of the jobs that we, as humans, do.”

Despite initial optimism, Klarna’s AI-driven approach faced challenges. Customers reported dissatisfaction with the quality of service, citing issues like robotic responses and inflexible scripts. CEO Sebastian Siemiatkowski acknowledged that prioritizing cost-cutting over service quality led to “lower quality” outcomes. He emphasized the importance of maintaining a human presence in customer service, stating, “From a brand perspective, a company perspective, I just think it’s so critical that you are clear to your customer that there will always be a human if you want”.

Klarna’s response to these challenges…

Klarna has begun rehiring human staff, particularly in customer service roles. The company is piloting a new model where remote workers, such as students or individuals in rural areas, can log in and provide service on-demand, akin to an “Uber-type setup”. This approach aims to restore the empathy and flexibility that AI systems lacked, improving overall customer satisfaction.

Klarna’s experience underscores the importance of a hybrid model that combines AI capabilities with human expertise to deliver high-quality customer service.

Are your employees suffering from Boreout?

According to a CNBC article ‘Boreout’ is the new burnout and a significant factor in workplace unhappiness. With burnout becoming increasingly common, it’s easy to assume that feeling disengaged at work, emotionally drained, or irritable on the job stems from being overwhelmed. But according to Wharton organizational psychologist and bestselling author Adam Grant, there may be another overlooked factor at play: “boreout”—essentially, burnout in reverse. “Burnout is about being overstimulated and overwhelmed,” says Grant, currently serving as Chief

Worklife Expert at Glassdoor. “Boreout is about being underwhelmed.”

Grant explains that boreout can arise from repetitive tasks, lack of career progression, unclear purpose, and, in particular, reduced social interaction. These conditions have become more widespread with the rise of remote and hybrid work models. While about 80% of U.S. workers still prefer remote or hybrid arrangements, a 2024 Gallup poll shows that diminished social connection remains a top challenge. Nearly 30% of respondents also rated virtual meetings as less effective than in-person ones.

“People show up to virtual meetings looking drained—not from burnout, but because they’re uninterested,” Grant notes. “They’re not engaged. They’re just there, like zombies.” He also points to a deeper shift in workplace culture: as employees change roles more frequently, they form fewer meaningful bonds. “When we don’t expect to stay long, we don’t invest socially,” Grant says. “We treat coworkers as temporary connections, keeping things polite but distant, while saving true camaraderie for life outside of work.”

Boreout isn’t burnout—it’s the silent killer of motivation, born from being under-challenged, undervalued, and utterly uninspired.

It’s time to transform your employee experience—are you ready to lead the change?

Book a complimentary advisory call with a DiJulius Group expert today. You’ll learn how to empower your team, consistently create exceptional experiences, and, ultimately, build a culture that keeps top talent and loyal customers coming back.

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