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Klarna lay off 10% of workforce due to downturn in eCommerce
- jstx1 4y agoHave things always been this... reactionary? One bad quarter and we're into layoff territory at a bunch of companies.
- sealeck 4y agoIt's not the one bad quarter in isolation, it's the fact that there now seem to be a bunch of structural trends which will cause problems for ecommerce: - high inflation (relative to wage growth) cuts into the average disposable income, which decreases the amount of money people have to spend on luxury goods - supply chain problems (which are driving inflation) make it harder for sellers to sell goods Further, there's the expectation that we're heading out of the low-interest rate times which makes it harder for Klarna to raise future capital, and increases the value of the capital they do have now relative to that which they could amass in the future through employing more workers.
- anm89 4y agoBecause these companies aren't responding to a bad quarter. They are responding to an intensly unfavorable set of macro conditions.
- mosdl 4y agoThey are also trying to raise money, so they need to cut costs to increase runway.
- birdyrooster 4y agoSounds like spin to distract from management
- ShivShankaran 4y agoeasy money via QE is ending and most companies are piling away their cash. Look at fed reverse repo, hit a new historic record. Majorly, the forward guidance is pretty bad for the forthcoming quarters. If you are cash negative or not profitable these are dark times.
- deleted 4y ago[deleted]
- VGltZUNvbnN1 4y agoKlarna is also in an extreme bad position they give credits to people with FICO scores way below what normal banks would count as credit worthy. You can even order take out and pay 30 days later. It's a system designed to fail.
- MrMan 4y agoIt used to be called sub-prime finance and unsecured was the lowest most toxic of them all. It's hard to change the laws of the universe
- aaaaaaaaata 4y agoNo.
- MrMan 4y agoHire now pay later