Klarna cuts 102 U.S. jobs amid outsourcing
OHIO, UNITED STATES — Swedish fintech company Klarna is eliminating 102 jobs in Columbus, Ohio, by outsourcing the roles just before the December holidays.
The layoffs will occur on December 23 or within two weeks after, impacting nearly all of Klarna’s workforce in Columbus, which has its American headquarters.
Klarna stated in a WARN notice that the affected jobs are outsourced to vendors, and employees will be offered similar roles. The positions include customer service, partner operations, fraud prevention, and anti-money laundering functions.
The Columbus layoffs are part of Klarna’s move to outsource around 500 jobs globally to partners like Accenture and Foundever. The company said this second round of outsourcing aims to optimize operations and focus resources on core products.
Klarna established its U.S. foothold in Columbus in 2015, growing it into a tech hub. But the company has faced headwinds lately, with its valuation plunging after rapid growth. Klarna cut 10% of its global workforce in 2022 amid economic challenges.
The latest outsourcing indicates Klarna is still rightsizing, transferring non-core jobs to service providers. The firm added that impacted employees have the potential to be offered employment at the vendor to which the jobs are being outsourced.
Klarna pioneered buy-now-pay-later financing and remained a major player despite competition. However, analysts say the sector faces profitability pressures, forcing restructuring. Though Klarna returned to profitability in Q3 2022, its cost-cutting continues.
