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Опубликовано
24 мая 2022 г.
Время чтения
2 минут(-а,-ы)
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Klarna announces job cuts, 10% of posts to go

Опубликовано
24 мая 2022 г.

BNPL may be booming but a troubled global economy is still presenting challenges to operators in the segment and news has emerged that one of the biggest operators, Klarna, is cutting 10% of its workforce.


Klarna



Swedish company’s CEO has told staff of the job cuts on the back of weakening consumer confidence.

The company employs around 6,500 people and as consumer confidence is battered by surging inflation around the world, plus the war in Ukraine, the firm’s prospects have deteriorated since last autumn.

In a blog post after informing staff of the looming cuts, CEO Sebastian Siemiatkowski said: “When we set our business plans for 2022 in the autumn of last year, it was a very different world than the one we are in today. While crucial to stay calm in stormy weather, it’s also crucial not to turn a blind eye to reality.

“That is why we need to act. More than ever, we need to show laser focus on what really makes us successful in the future. Based on this, the senior leadership at Klarna has made some tough decisions. Some of the toughest we’ve ever had to take. Together, we have re-evaluated the organisation to ensure that we can continue to deliver on our ambitious goals.

“We have done this evaluation based on two things. We have the right team that focuses on the right things. And we have the right people in the right place.”

So the company is aiming to shed around 650 posts and will be contacting affected staff within the next few days. It's unclear for now where the job cuts will happen.

Klarna is the most prominent name in the burgeoning BNPL segment with many millions of users globally. For instance, it has 16 million users in Britain alone and has deals with a massive number of retailers to allow those users to pay for their goods on an interest-free basis in instalments.

The Wall Street Journal has claimed Klarna is seeking a new round of investment that could see it being valued down from $46 billion to $30 billion, but the company has called that “pure speculation”. Last year it remained loss-making with an operating loss of SEK6.58 billion ($689 million).

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