The cuts come to Fintech: Clarena plans to lay off 10% of employees

by time news

The Swedish fintech giant Klarna, one of the pioneers of the field of online non-bank credit, is probably the most recent victim of the value crisis that began in the capital market and in recent weeks has also seeped into the field of private technology companies. According to reports on the Swedish news site DI, the company plans to cut 10% of its employees – mostly in Europe – as part of a reorganization process and embark on a round of recruitment that includes reducing the company’s value from $ 46 billion to just $ 30 billion.

The company’s veteran CEO, Sebastian Smiatkowski, informed employees today (Monday) that “most of them will not be affected by the move,” and that some will “be notified that he has no place in the new organization.” The company employs over 6,500 people.

Clarena is one of the leaders in the “Buy Now, Pay Later” Financial Trend (BNPL) that allows fintech companies to instantly provide credit to e-commerce site customers and allow them to pay in installments on various routes. One of its biggest competitors, Ephraim (Affirm) has lost 74% of its value on the NASDAQ since the beginning of the year. The market has become more competitive with the entry of more huge players in them. Barclays andPayPal At the same time as the UK government announced it would start overseeing the BNPL market.

The recovery from the corona that is taking many e-commerce site customers out of their homes, along with global inflation and the rising chance of an economic slowdown, has also worsened Clarna’s situation ahead of the new round of recruitment. The fact that Softbank – which only recently announced a huge annual loss of $ 13 billion – is one of the key investors in Clarena certainly did not help it.

Clarena is a well-known brand in the Israeli high-tech arena: it was active here between 2011 and 2018, after acquiring the start-up Analyze of Yuval Samet, who currently heads the financial venture Reisap.

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