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Klarna To Lay Off 10% Of Its Workforce

Swedish payment company Klarna reportedly plans to lay off 10% of its employees in the coming days.

The latest news just comes a week after Wall Street Journal reported that the company was going to cut its valuation in order to raise fresh capital.

The company currently employs around 7,000 people. Cutting 10% of the company's workforce means that around 700 people will lose their job at the company.

According to CNBC, CEO Sebastian Siemiatkowski made the announcement to his employees in a pre-recorded video message on Monday.

The report says "vast majority" of Klarna employees won't be affected by the measures, however some "will be informed that we cannot offer you a role in the new organization."

"When we set our business plans for 2022 in the autumn of last year, it was a very different world than the one we are in today," Siemiatkowski said. "Since then, we have seen a tragic and unnecessary war in Ukraine unfold, a shift in consumer sentiment, a steep increase in inflation, a highly volatile stock market and a likely recession."

According to the WSJ's report, Klarna is seeking a new round of investment that could see its valuation brought down by a third, from $46 billion to $30 billion. According to Swedish tech site Di Digital, the goal is to raise as much as $1 billion of fresh capital.

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