Klarna the Swedish buy now pay later service declared that it’s laying off 10 percent of its global workforce in a pre-recorded video message according to the report. The agency recently has about 7,000 employees and a 10 percent cut back puts the number of affected workers someplace around 700. BNPL services like Klarna assert that after pay permits users to purchase a product for nothing or a small fraction of its full-price customers can then make incremental payments over a set period of time but will face a characteristically interest-free fee for any late payments. BNPL businesses soared at the height of the pandemic when many people were impoverished for cash and had nothing else better to do than shop online. Klarna CEO Sebastian delivered the news to employees in a pre-recorded video message citing the war in Ukraine unfolding a shift in consumer sentiment an abrupt increase in inflation a highly unstable stock market and a likely downturn as the reasons behind the layoffs. Klarna’s CEO explained that workers in Europe will receive an associated reimbursement but added that the severance process for employees in the US will look different depending on location. Last week it is reported that Klarna is looking to raise the latest round of funding that would value the agency at $46 billion it was valued practically one year ago. Rival BNPL service affirms has also seen a similar dip with its share price sinking 75 percent this year.
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