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Klarna holds a second round of layoffs

Sep 22, 2022
Illustration of the Klarna logo next to an old time pocket watch

Illustration: Sarah Grillo/Axios

BNPL startup Klarna held its second round of layoffs earlier this week, Swedish publisher SvD reported.

Why it matters: Klarna was once considered Europe's most valuable startup ($45.6 billion). Its valuation has since plunged 85% and the job cuts have followed.

Of note: In August, Klarna CEO Sebastian Siemiatkowski told Bloomberg the company was done with job cuts after it laid off 10% of its workforce, or about 700 workers.

Driving the news: The company is laying off under 100 employees, according to a Klarna spokesperson. One impacted worker on LinkedIn said the company "came to the conclusion that it needed to restructure again."

What they're saying: "Klarna, like all other companies, is constantly evaluating and making adjustments to the structure of its organization," the spokesperson wrote to Axios in an email.

  • The spokesperson added that there may be severance pay for some employees, and affected workers will be likely given "up to twice the notice period."
  • When asked whether more cuts were coming, the spokesperson said: "A new COO was appointed and with new leadership it is natural that changes and restructuring takes place."
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