Fintech company Klarna has become the latest firm to announce a drastic reduction of its workforce. Krishna Santra, partner in our Employment team, comments:
In recent news, Klarna will be making huge cuts to their staff and will lose 10% of their 7,000 strong workforce, citing a combination of rising prices, the war in Ukraine and a change in consumers’ preferences. It was reported that the CEO used a pre-recorded video message to break the news to staff. There have been other prominent tech firms such as Netflix that have also been reducing the size of their workforce.
The cost of living crisis shows no sign of slowing down. This in turn will mean that more and more companies, both domestic and abroad, will be faced with making difficult decisions as to whether to make redundancies. Companies need to ensure that they are legally compliant when dealing with redundancies and open up clear lines of communication with their staff to try and minimise the shock, upset and fallout that will follow when that decision is implemented.