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Klarna buys 10% of employees now and dismisses with deferred payment

Products like Klarna’s that you buy now and pay later were very popular in the Covid pandemic.

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Klarna will dismiss about 10% of the world’s workforce, buy it now, and later pay the company the latest key technology names to announce headcount reductions.

Sebastian Siemiatkowski, CEO and co-founder of Klarna, announced to employees in a pre-recorded video message on Monday. He said that the “majority” of Klarna’s employees would not be affected by this measure, but that he would be “informed that he could not provide a role in the new organization.”

“When we planned our business for 2022 last fall, it was a very different world than we are today,” said Siemiatkowski.

“Since then, there has been a tragic and unnecessary war in Ukraine, with changes in consumer sentiment, a sharp rise in inflation, a very volatile stock market, and perhaps a recession.”

Klarna’s boss states that European staff are offered redundant packages with “related rewards” and that the processes of other employees “look different” depending on where they work. Klarna will share more information with employees “immediately” about the changes, Siemiatkowski said.

The leading Swedish payments company currently has more than 6,500 employees worldwide.

Companies like Klarna’s that buy now and pay later, which allow shoppers to spread their purchase costs over a series of interest-free installments, are becoming very popular as online shopping accelerates during the Covid pandemic. was.

However, investors are concerned about the sustainability of sector growth as consumers tighten their wallets amid rising inflation and rising borrowing costs. AffirmThe largest BNPL provider in the United States, has lost nearly three-quarters of its stock market value since the beginning of the year.

The announcement of the layoff will be made later media According to last week’s report, Klarna will lose one-third of its market value in a new funding round.Private companies The final value is $ 46 billion With a led investment Softbank..

A Klarna spokeswoman said the company did not comment on market speculation.

Siemiatkowski said Klarna’s decision to reduce headcount was one of the “difficult” decisions in the company’s history, but “the laser needs to be focused on what really succeeds in the future.” ..

“While it’s important to stay calm in stormy weather, it’s also important not to close your eyes in reality,” he said.

“What we see in the world right now is neither temporary nor short-lived, so we need to act.”

Many tech companies that thrived during the Covid pandemic are now taking steps to reduce costs as investors. Sector sour Concerns over rising interest rates and declining market liquidity are the cause. Facebook parents Meta When Uber One of the companies that is delaying hiring, Netflix When Robin hood Announced dismissal.

Klarna buys 10% of employees now and dismisses with deferred payment

Source link Klarna buys 10% of employees now and dismisses with deferred payment

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