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Klarna Cuts 10% of Staff Warning of Likely Recession

ca.news.yahoo.com

11 points by is-is-odd 4 years ago · 7 comments

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IlPeach 4 years ago

It's interesting to see how this company somehow had it coming since it launched their card in the UK market last year, with the regulator breathing down their neck. It only got worse in the US with the current financial situation.

I would like to assume their change of heart about the work policy came way too late and their investment on real estate, like for many other companies that didn't acknowledge the changing times, also played a role in this.

The financial strategy is the direct fault of a few in key positions in the org, who won't be affected by this cut at all, rather played a bit of Russian roulette on their employees.

Their CEO is just as detached from reality as many others and the recession is just a scapegoat in this instance.

For what it matters, I wish all the best to every single one that was caught into this mess.

giantg2 4 years ago

All these places cutting staff and tightening their belts is going to be a self fulfilling prophecy.

  • dredmorbius 4 years ago

    There are a number of self-perpetuating economic phenomena.

    Bubble mentality is one.

    Bank-run logic.

    Inflationary spirals.

    Intelligent economic management injects countercyclical trends into the system to prevent positive feedback loops.

  • yuppie_scum 4 years ago

    What, like 5 companies? There are a lot of companies out there on a lot better footing/less overvalued than the big names you’re reading about that are still going to need skilled workers.

ilrwbwrkhv 4 years ago

Klarna, Uber, WeWork and so many other non businesses made their founders so rich in this massive cycle. It's a great con to be honest, right in the open, just take the money and leave.

  • is-is-oddOP 4 years ago

    Non businesses? Uber provides uncountable value to people’s daily lives. The fact that they are not profitable and have leaked VC money for a decade is another topic altogether

    • ilrwbwrkhv 4 years ago

      Sure. I can sell 100 dollar notes for 90 and provide unaccountable value to people's daily lives. I will however remain a non business.

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