Klarna To Layoff 10 Pct Of Its Workforce

Klarna To Layoff 10 Pct Of Its Workforce

Klarna To Layoff 10 Pct Of Its Workforce
Klarna To Layoff 10 Pct Of Its Workforce
Retail Bum

Retail Bum

Retail Bum

Retail Bum

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Buy now, pay later (BNPL) firm Klarna is planning to sack 10% of its workforce due to weakening consumer confidence, rising inflation, a volatile stock market, and Russia’s ongoing war against Ukraine.

The reduction in workforce is expected to impact all domains across the company’s business, Klarna revealed.

“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,” said Klarna Chief Executive Officer Sebastian Siemiatkowski said, adding that an amalgamation of socio-economic factors is resulting in a tumultuous year, which is likely barreling toward a recession.

“While crucial to stay calm in stormy weather, it’s also crucial not to turn a blind eye to reality. What we are seeing now in the world is not temporary or short-lived, and hence we need to act. More than ever, we need to be laser-focused on what really will make us successful going forward. Based on this, the senior leaders of Klarna have made some really tough decisions. Some of the hardest ones we have ever had to make.”

The Stockholm, Sweden-based company plans to compensate all workers across Europe. However, their severance is expected to vary based on their work and location.

The company currently serves more than 400,000 retailers, including heavyweights such as H&M, Saks, Macy’s, and Nike, across 45 countries.

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