Sweden’s Ready to lay off 10% of staff as war, inflation hits business
The Swedish payment company Klarna will lay off about 10% of its 7,000 employees, it said on Monday, as the rampant inflation and the war in Ukraine have worsened business sentiment. The news, which was first reported by Dagens Industri, was delivered to employees through a recorded message on Monday. The company, which offers a buy now, pay later service, reported operating losses of 6.58 billion Swedish kronor (689 million USD) in 2021.
Klarna said in a statement sent to Reuters that the world had changed since it presented its business plans in the autumn of 2021. “Since then, we have seen a tragic and unnecessary war in Ukraine develop, a change in consumer sentiment, a sharp rise in inflation, a very volatile stock market and a probable recession, says Sebastian Siemiatkowski, Klarna’s CEO and co-founder, in the statement.
“It makes me sad to say that as a result, about 10% of our colleagues and friends in all domains of the company will be affected,” he said. The technology startup is looking to raise up to SEK 10 billion in a new round of financing, says Dagens Industri.
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