Klarna

Klarna, the Swedish buy now, pay later fintech giant, announced a second round of layoffs in September 2022, affecting fewer than 100 employees globally. This came just four months after cutting 10% of its workforce and despite CEO Sebastian Siemiatkowski stating weeks earlier that layoffs were complete. The new COO, Camilla Giesecke, cited a need to reflect the company's "more focused" nature, with cuts targeting departments like IT and recruiting. Klarna's revised budget allowed for up to 6,000 employees. The move followed a turbulent period where Klarna's valuation plummeted 85% to $6.7 billion, and its losses more than tripled, driven by a challenging economic environment shifting away from the low-interest conditions that favored BNPL models.

Klarna, the Swedish fintech giant, is laying off approximately 700 employees, which represents about 10% of its global workforce of around 7,000. The decision, announced by CEO Sebastian Siemiatkowski in May 2022, is a response to a challenging capital market environment for fast-growing tech companies with high losses. The layoffs, affecting roles across the organization and primarily in Europe, are part of a broader cost-cutting trend in the Swedish tech sector, with companies like Trustly and Storytel also making reductions. This move coincides with reports that Klarna is seeking new funding at a significantly lower valuation than its previous peak, as the company aims to chart a clearer path to profitability.