Klarna Bank AB is a Swedish fintech company that provides online financial services such as online retail payments, direct payments and post-purchase payments.
The company employs more than 7,000 people, most of whom work at its headquarters in Stockholm and Berlin. By 2021, the company will handle approximately $80 billion in online sales. In 2011, approximately 40% of all e-commerce sales in Sweden were made through Klarna. In 2021, Klarna will be the largest e-commerce company in the world. In 2021, Klarna was Europe's most valuable private technology company at $45.6 billion, but that figure is expected to fall to $6.7 billion in 2022.
Klarna's primary service is to provide payment processing services to the e-commerce industry, handling customers' purchase claims and payments, and is known as a "buy now, pay later" (BNPL) service provider, as it provides customers with purchase credits as part of the payment process.
Klarna is a Stockholm-based fintech company founded in 2005 that provides online financial services such as online shopping payments, instant payments, and post-purchase payments. The company's goal is to simplify the online shopping experience.
Klarna, a Swedish online payment services company, has increased its losses by 47% to reach $1 billion by 2022. But that hasn't stopped the startup from raising the salary of its chief executive, Sebastian Simiatkowski, by 35 percent, according to the FT. Last year, he was paid $1.3 million. in 2021, he'll earn millions of dollars.
In May, the Wall Street Journal reported that the company was attracting investment at a valuation one-third below its current estimate of $46 billion.
Klarna CEO and co-founder Sebastian Szymitkowski announced the layoffs in a letter to all employees, TechCrunch reported. According to Szymitkowski, most employees will not be affected, but some will be notified that they can no longer work for the company, which is about 10 percent of the workforce.
Klarna has about 7,000 employees, of which about 700 will lose their jobs. Employees in Europe will receive severance pay, while in other countries, "the process will vary" depending on where the employee works. Semitkovsky said the decision was necessary for Klarna to "focus on the future success of the company," according to CNBC. He added that the company has been affected by geopolitical situations, including "special operations" in Ukraine, changes in consumer sentiment, rising inflation and stock market volatility.
Klarna allows users to pay for purchases in installments at partner stores. The company was hugely popular during the COVID-19 pandemic, which impacted the growth of online shopping, but now investors are worried about the market's profitability as rising inflation and high credit costs cause users to spend less, according to CNBC.
As of June 2021, the company had raised about $46 billion in investments, cementing its position as Europe's most expensive fintech service.On May 19, The Wall Street Journal (WSJ) reported that Klarna plans to raise about $30 billion, about one-third less than its current valuation.
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