Honestly, what a terrible letter. Did not once say the words layoff or let go. Using phrases like “continue to be part of klarna’s journey”. Good lord, is this a business or a cult? And not a single line about concrete steps they will take to support the layoffs (multi-month severance packages, etc). Hopefully that is what they intend, but as of right now, this is pretty disappointing.
Klarna – Company announcement from CEO regarding layoffs
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Re: Klarna – Company announcement from CEO regarding layoffs
#22What does it look like to fire someone in Europe? As an outsider, all I’ve heard is that it looks very different from the US. What does the author mean by ‘associated compensation’?
In Poland both the employer and the employee have to provide 1 month to 3 months notice, depending on the tenure.
This assumes employment under the labor law. In IT it's quite popular for employees to provide service as one person companies.
Re: Klarna – Company announcement from CEO regarding layoffs
#23Around 700 people will be let go (source: https://www.di.se/digital/sparpaket-pa-klarna-sparkar-10-pro... )
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Re: Klarna – Company announcement from CEO regarding layoffs
#24What does it look like to fire someone in Europe? As an outsider, all I’ve heard is that it looks very different from the US. What does the author mean by ‘associated compensation’?
Depends on the legislation in the country of employment. In Sweden, the law covering this situation is LAS, Lag om Anställningsskydd, The Employment Protection Act.[1] I'm not exactly an expert, but if you're going to lay people off you have to do it based on how long someone has been at the company. Before you can lay someone off for 'lack of work', you're also required to show that this person cannot fill another p…
This has been evolving over time. There are exceptions you can make as long as they're compensated. Now those things are negotiated in collective agreements at most places or individual contracts in the rare case.[1] There are also consequences for like if they claim it's a layoff but it's a firing and so on. It's kind of complicated and getting more so.
1. https://sv.wikipedia.org/wiki/Lagen_om_anst%C3%A4llningsskyd...
Re: Klarna – Company announcement from CEO regarding layoffs
#25Another indicator consumer spending is dropping and costs are going through the roof. This is probably the first of a bunch of layoffs sadly. I expect Finances (Banks / Mortgage providers) are going to be aggressively reducing headcounts in the near future. One side of my family is heavily in that industry and they're all extremely nervous. Sorry for anyone that lost their role, it's always tough to lose a job regard…
This is most likely not related to cash flows. This seems to be a preemptive strategic layoff to cut costs in preparation of tougher times to raise money / higher interest rates.
Klarna’s income is tied to consumer discretionary spending which is falling off a cliff.
Re: Klarna – Company announcement from CEO regarding layoffs
#26Terrible communication in that letter, I love brutally honest and to the point communication. Everyone's time is precious don't beat around the bush just say:
we are laying off 10% of the companies staff due to macro-economic conditions beyond our control, this coupled with decreased customer spending and hiring like this day would never happen lead us to this decision. Sorry :(
Re: Klarna – Company announcement from CEO regarding layoffs
#27What does it look like to fire someone in Europe? As an outsider, all I’ve heard is that it looks very different from the US. What does the author mean by ‘associated compensation’?
"Instead, if you are working in Europe, you will be offered to leave Klarna with an associated compensation"
Legislation and procedures depend on country. The quote above suggests that they intend to offer a voluntary redundancy package, which enables them to bypass a lot of hoops and red tape by offering you more than you would be legally entitled to if you agree to leave voluntarily. It is not uncommon.
Re: Klarna – Company announcement from CEO regarding layoffs
#28Klarna seems like horrible company to work for from what I have read on HN. IQ test for interviews, mass layoffs with little self awareness, and very low pay compared to the US.
Re: Klarna – Company announcement from CEO regarding layoffs
#29No longer a part of Klarna’s journey. barf
Right? I missed that part of the sentence, because the first part caught me:
the vast majority of Klarnauts won’t be impacted
It's not the time to use this made-up name for insiders when you're saying that many of them will soon be outsiders.
"Will all the Klarnauts please step forward. Not so fast, Jake."
Re: Klarna – Company announcement from CEO regarding layoffs
#30Terrible communication in that letter, I love brutally honest and to the point communication. Everyone's time is precious don't beat around the bush just say: we are laying off 10% of the companies staff due to macro-economic conditions beyond our control, this coupled with decreased customer spending and hiring like this day would never happen lead us to this decision. Sorry :(
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