Klarna faces backlash after CEO shares names of laid-off staff on social media

Klarna Financial institution is taking part in protection after its CEO stirred controversy by publishing on LinkedIn the names of tons of of workers the lender had lately laid off.

The monetary expertise firm mentioned final week that it could minimize about 10% of its roughly 5,000 staff to trim prices after a lack of $487 million final 12 months. On Could 30, Klarna CEO Sebastian Siemiatkowski adopted up with a LinkedIn submit that included a Google spreadsheet itemizing tons of of the laid-off staff by title, with the purpose of connecting them to recruiters and serving to them discover new jobs.

Siemiatkowski expressed “combined emotions” concerning the doc, calling it “a tangible image of a really onerous determination that saddens me deeply and can stick with me for an extended time frame.”

Publication of the doc drew combined, and heated, replies, with no less than two critics calling him “tone deaf.” Others questioned the knowledge of sharing 1000’s of e mail addresses in a public doc, main J. Tyler Wilson, the Klarna worker who put it collectively, to delete the e-mail column from the doc.

“Perhaps Klarna ought to think about new management, not letting go of proficient workers,” one individual wrote in response to the LinkedIn submit.

Key Speakers At IFGS UK FinTech Week Event
Sebastian Siemiatkowski, CEO of Klarna Financial institution, on the IFGS 2022 summit on the Guildhall in London, UK, on ​​Monday, April 4, 2022.

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But others applauded Siemiatowski’s efforts to assist former staff discover new employment. Workers whose names appeared on the checklist signed up for it voluntarily, and its content material just isn’t owned or managed by the corporate, Klarna mentioned in an e mail to CBS MoneyWatch.

“Our CEO, Sebastian, is highlighting the initiative on his personal public channels to extend visibility throughout his expansive community of employers and recruiters,” a said spokesperson.

On Twitter, Siemiatkowski underscored that former workers had opted into the checklist. The doc was “created by workers themselves, voluntarily, in an ideal try to extend their very own visibility in direction of recruiters. I’m merely sharing one thing they began,” he tweeted on Wednesday.

The choice to publicly determine laid-off workers follows current missteps by different firms that minimize staff. Higher.com’s CEO sparked outrage after canning 900 workers on a Zoom name in December, whereas auto retailer Carvana used Zoom to minimize 2,500 staff in Could, Each firms had been criticized as insensitive for dumping workers by video quite than in individual, as was customary earlier than the COVID-19 pandemic.

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