AM I NEXT? LAYOFFS AT KLARNA

Columbus, Ohio-based Klarna, a Swedish fintech company that provides online financial services such as payments for online storefronts and direct payments along with post-purchase "buy-now-pay-later" payments, has announced a 10% worldwide reduction in force.

The reduction will impact 700 employees with terminations starting immediately.

According to a Klarna spokesperson, “When we set our business plans for 2022 in the autumn of last year, it was a very different world than the one we are in today. While crucial to stay calm in stormy weather, it’s also crucial not to turn a blind eye to reality."

“That is why we need to act. More than ever, we need to show laser focus on what really makes us successful in the future. Based on this, the senior leadership at Klarna has made some tough decisions. Some of the toughest we’ve ever had to take. Together, we have re-evaluated the organization to ensure that we can continue to deliver on our ambitious goals."

“We have done this evaluation based on two things. We have the right team that focuses on the right things. And we have the right people in the right place.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? LAYOFFS AT NELNET (03/23/23)

MARCH 23, 2023 — 550 NEW LAYOFFS

In the company’s second mass layoff in the past two months, Nelnet announced 550 employees, most of them in its Nelnet Diversified Services division, will be laid off.

On March 22, 2023, Nelnet received a contract modification from the Department of Education (Department) for the company’s current loan servicing contracts with the Department. The modification significantly decreased the price earned by the company per borrower per month. Additionally, last month, the Department notified Nelnet of its intent to transfer 1 million borrowers from Nelnet Loan Servicing to another federal servicer. The transfer, which was not based on Nelnet’s performance, is scheduled to occur over the next few months. Both the price reduction and the unanticipated transfer of a million borrowers will have a material impact on NDS.

Approximately 550 associates who work in Nelnet’s Diversified Services (NDS) division and some in related shared services areas that support NDS were notified today their positions are being eliminated. Nelnet will also look for redundancies and efficiencies throughout the year related to the conclusion of projects centered on the consolidation of select loan servicing platforms. No other Nelnet businesses are impacted.

“Of all the strategic business decisions we must make, the rightsizing of teams is always the most difficult,” said chief executive officer Jeff Noordhoek. “While some terms of employment end knowingly because the specific work is completed, other unanticipated staff reductions are the result of challenging circumstances that have a significant impact on the business. We must adjust accordingly to continue providing value to customers to the best of our ability while also positioning the company for long-term success.”

JANUARY 20, 2023 — 350 LAYOFFS AND 210 TERMINATIONS

The company announced changes to manage excess staff capacity due to delays in the government’s student debt relief and return to repayment programs. Approximately 350 associates hired within the last six months will be laid off, and approximately 210 associates will be terminated for performance reasons in the company’s Nelnet Diversified Services (NDS) division.

The approximately 350 associates who will be laid off were hired within the last six months for the primary purpose of meeting the anticipated increase in student loan borrower activity, which was further delayed.

According to a company spokesperson, “These decisions are never easy. With the delay of federal student loan repayment through much of 2023, regrettably, it isn’t feasible to maintain increased staffing levels for work that will remain on hold for a significant amount of time.”

JUNE 6, 2022 — Original blog post…

Lincoln, Nebraska-based Nelnet, a financial services company specializing in the administration and repayment of student loans and other education financial services, has announced a reduction in force in response to lower work requirements.

The reduction in force has impacted 150 employees, located in 30 processing centers countrywide.

According to a company spokesperson, “Due to the federal government’s multiple extensions of the CARES Act relief period, federal student loan borrowers have not had to make loan payments since March 2020. As a result, our loan-servicing teams have been experiencing extremely low call volume and limited work available.”

“Now, more than two years later and with the most recent extension continuing through Aug. 31 — with no certainty as to whether or not the relief will be further extended — we have excess capacity in our loan-servicing teams, thus the need for right-sizing.

As of Dec. 31, Nelnet was servicing nearly $480 billion worth of federal loans for more than 14 million borrowers.

According to Nelnet CEO, Jeff Noordhoek, "We are proud of our team of associates who are truly responsible for our success. Their perseverance, optimism, and, most importantly, dedication to our customers through the current economic and political challenges and uncertainty is remarkable and gives us confidence for the future."

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT ROBINHOOD (06/28/23)

JUNE 26, 2023 — ROUND THREE: 7% OF STAFF TO BE LAID OFF

The company has announced it is reducing its headcount by 7%, or approximately 150 full-time employees company to balance staff for a slowdown in customer trading activity.

According to a spokesperson, “We’re ensuring operational excellence in how we work together on an ongoing basis. In some cases, this may mean teams make changes based on volume, workload, org design, and more.

AUGUST 2, 2022 — ROUND TWO: 23% OF STAFF TARGETED IN REORGANIZATION

Robinhood announced a 23% reduction of its workforce citing business conditions and the reduced participation of retail investors who are using its brokerage platform.

Approximately 700 employees were impacted.

Robinhood’s CEO Vlad Tenev noted, “Last year, we staffed many of our operations functions under the assumption that the heightened retail engagement we had been seeing with the stock and crypto markets in the Covid era would persist into 2022. In this new environment, we are operating with more staffing than appropriate. As CEO, I approved and took responsibility for our ambitious staffing trajectory—this is on me. The reality is that we over-hired, in particular in some of our support functions.”

MAY 4, 2022 — Orignal post…

Menlo Park, California-based Robinhood Markets, a financial services company specializing in commission-free trading of stocks, exchange-traded funds, and cryptocurrencies via the company's mobile app, has announced a major reduction in force, approximately laying off about 9% of its workforce.

The reduction in force will impact approximately 300 workers.

CEO and Co-Founder Vlad Tenev noted that business boomed during the pandemic and the company onboarded new hires rapidly leading to over-expansion and duplicative functions.

"This rapid headcount growth has led to some duplicate roles and job functions, and more layers and complexity than are optimal. After carefully considering all these factors, we determined that making these reductions to Robinhood's staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers."

"While the decision to undertake this action wasn’t easy, it is a deliberate step to ensure we are able to continue delivering on our strategic goals and furthering our mission to democratize finance.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?