Klarna’s Worsening Burn Rate Forces Additional Lay-Offs!

Klarna COO Camilla Giesecke announced additional lay offs
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The Swedish buy-now-pay-later fintech Klarna is planning a second round of layoffs, four months after it cut 10% of its global workforce, Sifted reports. In a live video message sent to employees, the company’s Chief Operating and Expansion Officer, Camilla Giesecke (LinkedIn), announced that the organization needed to make further cuts “to reflect the more focused nature of today’s Klarna.Klarna confirmed the new round of job cuts to Sifted and said fewer than 100 employees would be affected globally.  

It comes three weeks after CEO Sebastian Siemiatkowski told Bloomberg that all layoffs were done and that the company was “moving on.” However, Camilla Giesecke decided to cut deeper into the company’s workforce in her new capacity as Chief Operating and Expansion Officer.

Last month, Klarna announced its interim results and revealed that losses had more than tripled to $580 million in the six months to July, up from $168m in the same period in 2021. This worsening burn rate came as little surprise after the startup saw its valuation slashed by 85% from $46 billion to $6.7 billion a month earlier, as it tapped investors for $800 million in fresh funding. 

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