Klarna Expects to Lay Off 10% of Its Work Force

Swedish fintech startup Klarna has quickly become the name to watch in the hot buy now, pay later (BNPL) marketplace. Earning unicorn status as well as a full EU banking license to expand its business throughout Europe and beyond, Klarna started 2022 with ambitious goals to further build on its BNPL services for its large customer base.

Unfortunately, it seems that all that buzz won’t protect Klarna from the financial shockwaves that have rocked the rest of the industry. In a sign that the fintech industry in particular is anticipating a bumpy ride, Klarna announced to its staff that up to 10% of employees are at risk of being laid off.

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“Together, we have re-evaluated the organization to ensure that we can continue to deliver on our ambitious goals,” explained Chief Executive Officer Sebastian Siemiatkowski in the announcement. “We have done this evaluation based on two things – we have the right team that focuses on the right things, and we have the right people in the right place.”

Siemiatkowski’s optimistic outlook on the staffing change is characteristic of the response by firms across the fintech industry. Although warning bells continue to sound for an imminent recession, the flexible hiring practices by Klarna and other companies may help them weather the storm.