Why Klarna is cutting 10% of its global workforce

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The Swedish deferred payment specialist Klarna announced Monday the elimination of around 10% of its workforce worldwide, or 700 positions, citing the impact of the deterioration of the economic situation on its activity. Compared to its 2022 plan drawn up for last fall, the Swedish unicorn – still valued at more than $46.5 billion during a funding round last June – has seen its outlook deteriorate markedly in recent months. .
“Since then, we have seen a tragic and unnecessary war, a shift in consumer sentiment, a sharp rise in inflation, a very volatile stock market and a likely recession,” said Sebastian Siemiatkowski, Klarna CEO. , in a message to employees published by the group. Following a workforce review, "I regret to say that approximately 10% of our colleagues and friends in all areas of the company will be affected", writes the co-founder of the fintech. A spokeswoman for the group told AFP that the total workforce was currently 7,000 people.

Present in forty countries

If made on time, deferred payments are free, in a “buy now, pay later” model. The Stockholm-based group claims 147 million active users for 400,000 vendor customers, including H&M, Sephora, Samsung and Nike. According to the Wall Street Journal, the group is seeking investors at a price valuing the company in sharp decline, at 30 billion dollars. The job cuts follow a period of strong growth, which led to the company burning cash and deepening its losses last year, to 7.1 billion Swedish kronor (about 700 million euros) the past year.

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