Swedish Buy Now, Pay Later (BNPL) giant Klarna is set to embark on a second round of layoffs just four months after cutting 10% of its workforce.
Klarna embarks on second round of job cuts
The news of the layoffs was relayed to staff in a video call by Klarna COO Camilla Giesecke (Swedish news site). SvD report.
Addressing a workforce of 500, Giesecke said BNPL’s company will need to cut more departments, including IT and recruiting, “to reflect the more concentrated nature of Klarna today.” I was. Sifted.
Klarna has confirmed new job cuts, saying fewer than 100 employees globally will be affected.
A Klarna spokesperson said:
Klarna, like all companies, is constantly evaluating and adjusting its organizational structure.
However, the scale of the adjustments is often small compared to the big changes we made this spring caused by the turbulent environment.
In May, the company laid off about 10% of its workforce worldwide as the global economy continued to struggle.
The latest layoff news comes two months after Klarna’s valuation plummeted after raising $800 million in a new funding round at a valuation of $6.7 billion.
The new valuation is down about $39 billion from last year when the company was valued at $45.6 billion, following a $639 million funding round led by Japanese firm SoftBank.
Amid the global market downturn, the company said it was “unaffected by the significant drop in fintech stocks on the public market.”