What's happened
Klarna announced plans for random drug testing of employees, starting in Sweden, as part of a broader security initiative. This follows CEO Sebastian Siemiatkowski's concerns about the company's vulnerability to criminal interests. The fintech firm is also reducing its workforce while preparing for a potential IPO in the US.
Why it matters
What the papers say
According to Business Insider UK, Klarna's director of people and HR, Mikaela Mijatovic, stated that the drug testing initiative is part of a larger effort to enhance security. Siemiatkowski's comments on AI replacing human jobs were also highlighted, with TechCrunch noting that while the company has reduced its workforce, it continues to hire for essential roles. This dual approach reflects a complex strategy as Klarna navigates its upcoming IPO, aiming to balance security and operational efficiency.
How we got here
Klarna, once Europe's most valuable startup, is facing increased scrutiny as it prepares for a US IPO. CEO Siemiatkowski previously discussed the need for enhanced security measures due to rising criminal interest in the fintech sector.
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