Klarna dials back remote work and says it’s losing top talent to companies with stronger in-office culture as IPO nears

Ahead of its IPO next week, Klarna is rolling out a return-to-office policy and partly blamed its new requirement on losing talent to firms that prioritize in-person working.

Employees based in Stockholm, Berlin, Warsaw, and Nykøbing, are expected to come into the office three days a week starting September 29, the company informed workers in an internal Slack post Thursday, which was seen by Business Insider. The rollout will extend to other offices shortly thereafter, per the post.

Klarna’s announcement comes as more Big Tech companies and startups are unveiling their return-to-office plans for workers. Last September, CEO Andy Jassy wrote in a memo that Amazon would end remote work starting at the beginning of this year. Dell also said in January that it was “retiring” hybrid work and told employees to be in the office five days a week from March.Klarna also said in the Slack post, written by the company’s director of people and HR, Mikaela Mijatovic, that it tested out an office week in Stockholm during the spring. Many employees shared how much they enjoy reconnecting with colleagues, sharing ideas naturally, and working side by side, Mijatovic wrote in the message. “At the same time, we have seen some of our top talents leave for companies where in-person collaboration is a fundamental part of daily work,” Mijatovic wrote. “This is a signal we cannot ignore, as our success depends on being a company where people thrive and grow together.”Klarna declined to comment.

Once Europe’s most valuable startup, Klarna offers short-term financing to customers online and in stores at checkout. In 2021, it was valued at $45.6 billion, but its valuation fell to $6.7 billion in 2022 during a wider market downturn for startups. It is now seeking to raise up to $1.72 billion during its IPO on the New York Stock Exchange next week.

During the pandemic, Klarna implemented a hybrid work policy that allowed employees to work from home up to three days per week. In 2022, Klarna transitioned to a fully flexible work arrangement, giving employees complete flexibility to work from home or the office, with no mandatory in-office days.

Klarna previously considered rolling out a three-day-a-week return-to-office policy in 2023, according to a document discovered by an employee at the Swedish fintech company, according to internal Slack posts seen by Business Insider.

The company put together a draft mandate that was shared in a post in an internal Slack channel in 2023 after one staffer discovered it on Klarna’s intranet. Klarna’s chief operating officer, Camilla Giesecke, responded to the Slack post and said it was “just a draft” and that somebody “stumbled upon it and decided to post it.”The proposed RTO policy was met with backlash from some staff at the time, according to five Klarna employees BI spoke to and internal Slack comments.

Two people said in Slack comments at the time that implementing the policy would be “disastrous” and “problematic” if they policy was implemented because some workers had been hired with the option to work remotely, and others had moved away from the office during the pandemic.

Got a tip? Contact the reporter, Jyoti Mann, via the encrypted messaging app Signal at jyotimann.11 or via email at [email protected]. Reach out through a nonwork device.

The post Klarna dials back remote work and says it’s losing top talent to companies with stronger in-office culture as IPO nears appeared first on Business Insider.