The most expensive fintech in Europe Klarna will lay off 10% of the staff due to the impact of the recession on the issuance of installments

In May, the WSJ reported that the company was seeking investment at a valuation one-third less than its current value, now valued at $46 billion.

  • Klarna CEO and co-founder Sebastian Semyatkowski announced the cuts in a message sent to all employees, writes TechCrunch. It won’t affect most people, he said, but some will be told they won’t be able to continue working for the company – about 10% of the staff.
  • Klarna employs about 7,000 people, about 700 will lose their jobs. Employees in Europe will be asked to leave the service in exchange for severance pay, in other countries “the process will look different” depending on where the employee works.
  • Semyatkowski said the decision is necessary to keep Klarna “focused on what will make it successful in the future,” writes CNBC. He also said that he was influenced by the geopolitical situation: a “special operation” in Ukraine, a change in consumer sentiment, a sharp rise in inflation and volatility in the stock market.
  • Klarna allows users to pay for purchases in partner stores in installments. According to CNBC, such companies have become popular during the Covid-19 pandemic, which has affected the growth of online shopping. But right now, investors are worried about market stability as users cut back on spending due to rising inflation and high borrowing costs.
  • In June 2021, the company attracted investments at a valuation of $46 billion and confirmed the status of the most expensive fintech service in Europe. On May 19, the WSJ reported that Klarna plans to raise investments at a third less than the current estimate – about $30 billion.

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