Earlier today, Sebastian Siemiatkowski, Klarna’s CEO and co-founder, shared this message with all employees across the business. 

Hello everyone.

I am no stranger to sharing good and bad news. However, today is the hardest one to date.

As much as we may like it to be the case, Klarna does not exist in a bubble. We serve 400,000 merchants and 150m consumers, which means that we have a profound impact on the world. At the same time, we are highly influenced by it. And 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. 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. All of which have marked the beginning of a very tumultuous year.

While crucial to stay calm in stormy weather, it’s also crucial not to turn a blind eye to reality. What we are seeing now in the world is not temporary or short-lived, and hence we need to act. More than ever, we need to be laser-focused on what really will make us successful going forward. Based on this, the senior leaders of Klarna have made some really tough decisions. Some of the hardest ones we have ever had to make.

Together we have re-evaluated our organizational setup to make sure we can continue to deliver on our ambitious targets. 

We have done this evaluation based on two principles:

• Do we have the right teams focusing on the right things?

• Do we have the right people in the right place?

It saddens me to say that as a result of this, approximately 10% of our colleagues and friends across all domains in the company will be impacted.

I want to start by saying that the vast majority of Klarnauts won’t be impacted, and will continue to be part of Klarna’s journey. However, unfortunately, some of you will be informed that we cannot offer you a role in the new organization. Instead, if you are working in Europe, you will be offered to leave Klarna with an associated compensation. Outside of Europe, the process for impacted employees will look different depending on where you work. You will obviously receive more information about this very soon.

So, what will happen now?

It is important to us that everyone impacted is informed in a personal, individual conversation. We hope you will allow us some patience as we try to support and guide everyone through this, in the best way possible.

Colleagues and friends who are impacted will receive an invite to a conversation within the next few days. The invite will be titled “Meeting regarding your role at Klarna”. In this meeting, you will be provided with further information about the next steps.

The information I have shared just now will be available on our internal channels. I will also send an email to everyone in the company with the link to the recording and relevant information. It will also be made available on our external website. In consideration of the privacy of the people affected by these changes, we ask everyone to work from home this week. We are fully dedicated to provide clarity and support for all Klarnauts through this challenging time, as fast as humanly possible. This is our priority.

I, together with the management team and all senior leaders are deeply saddened by seeing friends and colleagues leave. I want to thank each and every one of you for your hard work and above all your contribution to Klarna and our mission.

Lastly, I want to highlight that Klarna continues to hold a strong position in the market. We have a diversified business that distinguishes us from the competition. Therefore I do remain relentlessly optimistic about Klarnas’s future, despite what we now need to go through.

Take care of yourselves and each other.

Sebastian

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