Swedish BNPL company Klarna Bank AB announced it will slash jobs once again after losing $39 billion of its valuation.
Klarna’s chief operating officer Camilla Giesecke broke the news, announcing the layoffs in a video call to staff.
Addressing 500 employees, she said the BNPL giant must make additional cuts, mainly within the IT and recruiting departments, “to reflect the more focused nature of today’s Klarna.”
The company has confirmed the job cuts and says less than 100 employees will be impacted globally.
“During the summer, we appointed a new COO, and it is natural that a new manager makes changes, which is what is happening now,” a Klarna spokesperson said.
The new COO Gisecke said this move would accommodate a smaller workforce. This follows dismissals earlier in the year, when Klarna said it would cut 10% of its approximately 7,000 employees.
“With a leaner organization to support, I have come to the conclusion that we need to restructure the COO domains to mirror the more focused nature of today’s Klarna,” Giesecke said, according to a memo seen by Bloomberg.
The news comes after Klarna saw its losses more than treble to £500m in the first half of 2022 as the economy slows down and it faces soaring costs and mounting credit losses.
News of the latest job cuts comes two months after Klarna saw its valuation plummet after it raised $800 million in a new financing round at a $6.7 billion valuation.
The new valuation is down almost $39 billion from last year, when the company was valued at $45.6 billion following a $639 million funding round led by Japanese firm SoftBank.