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A CEO Announced 700 Layoffs In A Pre-Recorded Video & Told Staff To Watch For An Invite

Klarna is cutting 10% of its staff 😔

The CEO of Klarna, a Swedish payments firm, may have just one-upped Better.com when it comes to finding a brutal way to announce mass layoffs.

Klarna CEO Sebastian Siemiatkowski announced this week that he'd be firing 700 employees or about 10% of the company's staff - and he reportedly did it by sending everyone a pre-recorded video with the news.

To make things worse, he didn't say which employees would be getting the axe. Instead, he told everyone to watch for an invite to a "meeting regarding your role at Klarna" on their calendar.

The video hasn't been released but the transcript can be found on Klarna's website.

Employees were also told to work from home for the week so they'd have privacy in case they were fired, reported Business Insider.

Siemiatkowski said the layoffs are necessary because of "a tragic and unnecessary war in Ukraine, a shift in consumer sentiment, a steep increase in inflation, a highly volatile stock market and a likely recession."

Klarna is an app that allows you to have the things you want instantly but provides you with a "buy now, pay later" system.

In 2021 the company made an operating loss of 6.58 billion Swedish crowns, equivalent to CA$664 million, reported The National Post.

"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," said Siemiatkowski in his statement.

The cuts are expected to hit staff in both Europe and North America.

Klarna isn't the only tech company to cut staff due to its losses. Companies like Netflix and Robinhood have also turned to hiring freezes and job cuts amidst the instability they are facing.

In April, Robinhood cut 9% of its staff, while Netflix recently cut 150 of its employees.

"The senior leaders of Klarna have made some really tough decisions. Some of the hardest ones we have ever had to make," said Siemiatkowski during the video.

According to a report by Bloomberg, Klarna is now turning to investors to raise $30 billion in funds.