FinTech: Klarna Trims Workforce…Again

September 23, 2022 | FinTech, News

The layoffs at Klarna come within three weeks of CEO Sebastian Siemiatkowski’s Bloomberg interview in which he said job cuts were “done.”

Klarna’s chief operating officer, Camilla Giesecke, sent a live video message to employees on Monday afternoon, announcing that the company would be implementing additional layoffs. The message went out to about 500 employees in three departments, and justified the action on “the more focused nature of today’s Klarna.” (Sifted)

Klarna confirmed to Sifted that the layoffs would affect fewer than 100 employees globally.

However, a Klarna spokesperson told Sifted that the company had appointed a new COO during the summer and that it was “natural that a new manager makes changes, which is what is happening now.”

In other comments the spokesperson said:

– the company is constantly evaluating and making adjustments to the structure of its organisation

– however, the adjustments are often small in scale compared to the major changes made this spring, prompted by the turbulent environment.

– the company would “sometimes” offer severance pay for employees — which would represent pay worth up to double their notice period.

– our employees remain highly sought after in the labour market

– at least 70% of those who left Klarna with severance pay at the beginning of the summer are already in new jobs

According to TechCrunch, the company which employed 7,000 people at the beginning of the year, now has around 6,000 only.

In May, the fintech had to absorb a massive cut in its valuation when it raised $ 800 million at a valuation of $ 6.7 billion, down from a massive $ 45.6 billion valuation which it commanded in June last year when it raised $ 640 million.

Related Story: Klarna Raises $800M At Slashed Valuation To Pursue US Expansion

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