With new layoffs, Klarna joins the ranks of companies that have to carry out more than one layoff • CableFree TV

Published by
Peter Kavinsky

They say if you’re going to cut, cut deep so you can only do it once. Alas, more companies are realizing that despite layoffs earlier in the year, they now need to cut more.

KlarnaThe Stockholm-based Swedish company “buy now, pay later” found itself in this camp. According to the publication siftedThe 17-year-old company told employees on Monday in a video message from COO Camille Giesecke that Klarna was cutting staff again. to “reflect” his new and “more focused nature”.

Giesecke’s message was sent to approximately 500 Klarna employees, including in IT and recruiting, although Klarna tells us in a separate statement that fewer than 100 employees worldwide will be affected by the job cuts. The statement reads: “Klarna, like all other companies, constantly evaluates and makes adjustments to the structure of its organization. Our organization is made up of 700 fast-moving teams that are constantly changing, with Klarna employees moving between teams and departments every week. However, the adjustments are often small compared to the big turbulent changes we made this spring.”

The company, which had 7,000 employees earlier this year, now employs “about 6,000,” according to a TechCrunch spokesperson.

The cuts are part of a wider shift in momentum for Klarna, which has long had the wind behind it. The company cut its global workforce by about 10% in May; he also raised funds for valuation $6.7 billion in the $800 million round, compared to the somewhat desirable valuation $45.6 billion that Klarna was appointed by SoftBank when the Japanese conglomerate led a $640 million round in the company last June. (SoftBank is known, of course, for its aggressive markupsstrategy that is not works so well for outfit)

Unfortunately, the cuts also came three weeks after CEO Sebastian Siemiatkowski told Bloomberg that his company finished layoffs.

Klarna isn’t the only buy-now-pay-later company facing major challenges. Competition, market volatility and the prospect of a recession (not to mention more regulation) threatens the growth of every company in this category right now.

However, repeated layoffs are never good news. So-called “survivor involvement” is always a problem after deep cuts. When layoffs follow layoffs, as is happening in more and more companies (Natasha Mascarenhas of TC noticed this trend for example, in Robinhood, On Deck, Gemini and others), morale can drop even more.

“We appointed a new chief operating officer over the summer, and it is only natural that the new manager is making changes, which is happening now,” Sifted said of its latest layoff.

Meanwhile, Klarna tells TechCrunch that in the event of these “small adjustments,” the company “sometimes offers severance pay for some employees, typically twice the notice period and thus significantly more than they would have received had Klarna fired employees.”

The spokesperson further notes that “it is always sad when employees leave Klarna and we support them in every possible way, although we are pleased to note that our employees are still in high demand in the labor market. We estimate that at least 70% of those who left Klarna on severance pay at the beginning of the summer have already found a new job.”

Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org

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