European unicorn, Gorillas, and Klarna downsize their plans to cut extra cost

Delivery startup Gorillas and Stockholm-based fintech giant Klarna have decided to downsize their plans to cut extra costs.

The European unicorn Gorillas and Klarna have recently decided to downsize their company operations, with one company letting 300 of its employees at HQ while other plans to let go 10 percent of employees globally. 

The Covid-19 pandemic had catastrophic effects on governments and businesses worldwide. Apart from the pandemic, the Russian-Ukraine war significantly impacted the economy, thus making the situation even more complex. Governments had expanded their support to many businesses to prevent massive unemployment. Companies still struggle to manage their work with resources and funds even with such efforts. 

This situation has caused many European companies to downsize their plans so they would not suffer any loss. The European unicorn Gorillas and Klarna have recently decided to reduce their company operations, with one company letting 300 of its employees at HQ while other plans to let go 10 percent of employees globally. The European unicorn Gorillas and Klarna have recently decided to downsize their company operations, with one company allowing 300 of its employees at HQ while other plans to let go 10 percent of employees globally. 

TOn Tuesday, the Berlin-based delivery startup Gorillas announced that it would lay off 300 of its team members “with a heavy heart”  to cut costs and extend the company’s runway. With the company’s base in several countries, it has also planned to shut down several markets in Italy, Spain, Denmark, and Belgium.  

Gorillas in its mentions, “After closing our last funding round in October 2021, we shifted our focus from hyper-growth to a clear path to profitability, which enabled us to increase the efficiency of our business significantly. The recent developments in the capital markets confirmed this strategy and proved that we need to reinforce our company’s focus on profitability. As a part of our plan, we have precisely defined our next strategic steps and how we can succeed in reaching our ambitions.” 

Similarly, Klarna, a Stockholm-based fintech giant, has also planned to lay off 10 percent of its global staff members for the company’s growth. Founded by Niklas Adalberth, Sebastian Siemiatkowski, and Victor Jacobsson in the year 2005, Klarna is an e-commerce payment solutions platform for merchants and shoppers. 

Currently, with over 45 markets serving 400,000 merchants and 150 million consumers worldwide, the company has decided to raise fresh capital by cutting its valuation to a “low $30-billion-range” post-money valuation. Despite the company’s decreased valuation and layoffs, Klarna still holds a strong market position and has a bright, optimistic future.

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