New job cuts put Klarna among companies having to make multiple layoffs

If you want to cut it, it is said that you can cut it deeply and only once. Unfortunately, despite the layoffs at the beginning of the year, more and more companies are now realizing they need to cut even more.

Klarnabased in Stockholm, Sweden, buy now, pay later outfit find yourself in this camp. According to the outletThe 17-year-old company told employees on Monday in a video message from COO Camilla Giesecke that Klarna was laying off staff again. It “reflects” its new “more focused nature”.

About 500 Klarna employees were invited to watch Giesecke deliver the news. This includes IT and recruitment. Read the statement:

Klarna, like all companies, is constantly evaluating and adjusting its organizational structure. Our organization is built with 700 fast-moving teams that are constantly changing, with Klarna employees moving between teams and departments every week. However, the big changes we made this spring are often small compared to those caused by the turbulent environment.

The organization, which employed 7,000 people earlier this year, now has “about 6,000” employees, a spokesperson told TechCrunch.

The cuts are part of a broader shift in momentum for Klarna, which has long been under the tailwinds. In May, the company reduced its global workforce by 10% of his. again, $6.7 billion valuation $800M Round, From Somewhat Ambitious $45.6 billion valuation Klarna was allocated by SoftBank when the Japanese conglomerate led a $640 million round in the company last June. (Softbank, of course, aggressive markupa strategy that is not works very well for costume. )

Unfortunately, CEO Sebastian Siemiatkowski told Bloomberg that the company laid off.

Klarna isn’t the only “buy now, pay later” company facing significant headwinds.competition, market volatility and recession prospects (not to mention more regulation) currently threatens the growth of all companies in this category.

Still, repeated layoffs are never good news. So-called “survivor involvement” is always an issue after deep cuts.As is happening in more and more companies when layoffs follow layoffs (TC’s Natascha Mascarenhas observed this trend For example, Robinhood, On Deck, Gemini, etc. can lower morale even further.

“We appointed a new COO over the summer. It’s only natural that the new manager will make changes, and it’s happening now,” the company told Sifted about the latest cut.

On the other hand, Klarna told TechCrunch that in the case of these “small adjustments,” it “may offer severance pay to some employees, usually up to twice the notice period, and Klarna will make headcount reductions.” It’s a lot more than I would have received if I had been there,” he said.

The spokesperson added, “While it is always sad when an employee leaves Klarna and we support them in any way we can, we know our employees are highly sought after in the labor market. By our assessment, at least 70% of those who left Klarna on severance pay at the beginning of the summer have already found new jobs.”

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