The Swedish company specializes in consumer loans.
(Photo: imago images/ZUMA Wire)
Stockholm The Swedish payment service provider Klarna is cutting ten percent of its jobs, citing rising inflation and the war in Ukraine. Since the company says it employs more than 7,000 people on the job network LinkedIn, at least 700 are likely to be affected by the move. With reference to rising inflation and the Ukraine war, the company is cutting ten percent of its jobs. Since the company claims to employ more than 7,000 people on the LinkedIn job network, vo
Volatile stock markets and the prospect of a “probable recession” also contributed to the decision, said the company, which grew up in e-commerce checkout and consumer lending.
Behind the step is the fear that the “Buy Now, Pay Later” business, especially in the USA, will no longer grow rapidly due to the high inflation rates. Klarna is particularly active in this market. The “Wall Street Journal” reported that In an upcoming round of financing, Klarna will therefore have to accept deductions in the billions when valuing the company.
The large retail chains such as Walmart had already reported when they presented their quarterly figures that inflation was now also affecting the everyday purchases of US households.
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“It saddens me to say that around ten percent of our colleagues and friends across all areas of the company will be affected,” said CEO and Klarna co-founder Sebastian Siemiatkowski.
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