As Klarna cuts jobs, rival fintechs say they’re recruiting for hundreds of roles

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  • As Klarna plans to lay off 10% of its workforce, rival fintech firm Revolt & Wise say they are hiring for hundreds of open roles.
  • “Wise’s years of building Wise into a profitable long-term company are now paying off,” Wise CEO Christo Carman said Wednesday.
  • Digital finance got a big boost from the Covid pandemic, but in 2022, the sector took a beating.

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Not all fintech unicorns are cutting jobs.

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After Klarna announced plans to lay off 10% of its workforce on Monday, some rival fintechs are making it clear they have no intention of cutting jobs or stopping hiring.

Revolut, a $33 billion digital banking start-up, said the company is “actively hiring,” listing more than 250 open roles on its website.

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Meanwhile, Wise CEO Christo Carman said the London-based money transfer firm is in a “different place” to tech firms that are letting employees go.

“Wise’s years of building as a long-term profitable company are now paying off,” Carman tweeted on Wednesday.

“There’s so much demand for international banking, we can’t afford to hire people fast enough to make it.”

Meanwhile, German digital bank N26 said it “has no current plans to reduce headcount.” The final value of the firm was $9 billion.

“We will continue to make strategic investments to grow our team with a focus on product, technology, compliance and financial crime prevention,” said an N26 spokesperson.

This is in stark contrast with Klarna. Buy now, pay later The firm — which lets shoppers split their purchases into equal, monthly installments — said it plans to cut an estimated 700 roles due to the sour economic climate.

“When we laid out our business plans for 2022 in the autumn of last year, it was very different than the world we live in today,” Klarna CEO Sebastian Simyatkowski told employees in a pre-recorded video on Monday .

“Since then, we have seen a tragic and unnecessary war in Ukraine, changes in consumer sentiment, a massive increase in inflation, a highly volatile stock market and a potential recession.”

Other financial tech firms, such as Robinhood and Better.com, have also taken measures. Job cuts and cost curbs this year.

Digital finance got a major boost from the COVID pandemic as people turned to online channels to make payments, apply for loans and trade shares. But the sector has taken a beating as the war in Ukraine in 2022, rising inflation and high interest rates, has prompted investors to question the high valuations in the space.

Wise, for example, has lost nearly two-thirds of its market value since its July 2021 listing.

Rishi Khosla, CEO of UK-based online lender OakNorth, said there are “massive bubbles” in fintech – buy now, pay later for crypto. He said the BNPL was allowed to flourish largely thanks to “regulatory arbitration”.

“Eventually, regulation is going to catch up with them, and so this opportunity is not going to continue,” he said.

clear snow Allegedly It sought funding at a 34% discount to its previous investment round, which valued the company at $46 billion. A Klarna spokesperson dismissed it as speculation.

When asked whether Revolut plans to do the same, a company spokesperson said it has no intention of doing so.

Credit: www.cnbc.com /

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