Swedish buy-now-pay-later company Klarna Bank AB announced it will slash jobs and after losing $39 billion of its valuation.

Swedish buy-now-pay-later company Klarna Bank AB announced it will lay off employees as part of its plans to restructure parts of its business. This comes after losing $39 billion in valuation. The company plans to pursue a slower-growing, smaller operation, people familiar with the matter said.

In a meeting this week, a manager in Klarna’s internal engineering unit told staff that Klarna will be less focused on growth. Klarna also told employees there will be fewer employees by the end of 2022. The cuts for this unit and others are meant to support a leaner staff. The productivity and platforms business will still need to “keep the lights on,” according to a presentation seen by Bloomberg.

The presentation followed comments on Monday from newly promoted Chief Operating Officer Camilla Giesecke, who took the role in August. In a video meeting, Giesecke had announced that the company will lay off employees in internal support functions. She said this move would accommodate a smaller workforce. This follows dismissals earlier in the year, when Klarna said it would cut 10% of its approximately 7,000 employees.

“With a leaner organization to support, I have come to the conclusion that we need to restructure the COO domains to mirror the more focused nature of today’s Klarna,” Giesecke said, according to a memo seen by Bloomberg.

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