Klarna, the Swedish “buy now, pay later” service (BNPL), announced that it’s laying off 10 percent of its global workforce in a prerecorded video message, according to reports from Protocol and TechCrunch. The company currently has about 7,000 employees, and a 10 percent cutback puts the number of affected workers somewhere around 700.
BNPL services like Klarna, Affirm, and Afterpay allows users to purchase a product for nothing or a small fraction of its full price. Customers can then make incremental payments over a set period of time but will face a typically interest-free fee for any late payments. BNPL businesses soared at the height of the pandemic when many people were strapped for cash and had nothing else better to do than shop…