Klarna’s CEO: We cut back at the right time

Klarna’s CEO: We cut back at the right time
Klarna’s CEO: We cut back at the right time

The Swedish payment company Klarna has had a tough year. Last spring, the company was forced to lower its valuation by 85 percent and at the same time cut 10 percent of the staff.

In an interview with American CNBC, Klarna CEO Sebastian Siemiatkowski says that the company now expects to be profitable on a monthly basis by next summer.

He also says that it was lucky that Klarna made its staff reduction already in May and not now in the autumn like other tech companies, such as Meta and Amazon.

– In a way, we were lucky to make that decision in May, because we have seen that basically everyone who left Klarna then got a new job.

– If we had done it today instead, it probably wouldn’t have looked the same, he says.

The Swedish unions have been critical of how the cuts were handled. The union and the banking union Finansförbundet demanded damages because they believed that Klarna violated the co-determination act.

Klarna has since come to an agreement with the Financial Association, which will gain more transparency in the face of possible future reorganisations.

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The article is in Swedish

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