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 to the latest major tech companies 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 the “majority” of Klarna’s employees would not be affected by this measure, but “being informed that the new organization cannot offer you a role,” he said.
“If you work in Europe, you will be offered to leave Klarna with the relevant compensation,” said Klarna’s boss. “Outside Europe, the processes of affected employees depend on where they work.”
Klarna will share more information with employees “immediately” about the changes, Siemiatkowski said. A major Swedish payments company has more than 6,500 employees.
As Covid accelerates the adoption of online shopping, postpaid products like Klarna’s that buy now and allow shoppers to spread their purchase costs across a series of interest-free installments have become very popular. 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 2022.
The movement will come 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 “difficult,” but it was necessary for the company to remain “focused on what really helps us to succeed in the future.”
“While it’s important to stay calm in stormy weather, it’s also important not to close your eyes in reality,” said Siemiatkowski. “What we see in the world right now is neither temporary nor short-lived, so we need to act.”
Many of Covid’s pandemic and thriving tech companies are taking steps to reduce costs as investors. Sector sour Concerns over rising interest rates and declining market liquidity are the cause. Facebook parent company Meta When Uber It ’s one of the companies that is delaying employment. Netflix When Robin hood Announced dismissal.
