Klarna Bank, a Sweden-based buy now, pay later (BNPL) provider, is looking to further shrink its workforce as it overhauls parts of its business in line with a slower-paced and smaller operation, reported Bloomberg citing people privy to the development.

The move comes shortly after the firm’s valuation was reduced by $39bn.

In a meeting held last week, a manager working in Klarna’s internal engineering division told employees, including the ones who might lose their jobs, that the company was planning to shift its focus from growth.

The manager also told that the company will operate with less employees by the year end.

This indicates that Klarna will reduce headcount in its internal engineering and other units. However, the firm’s productivity and platforms business will continue to operate, as per a presentation cited by the news agency.

Meanwhile, in a video meeting, Klarna’s new COO Camilla Giesecke Giesecke stated that the company’s planned redundancies would impact employees in the internal support functions.

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It follows an announcement made by Klarna in May this year about reducing the size of its 7,000-member team by 10%.

Giesecke was quoted by Bloomberg as saying in a memo: “With a leaner organisation to support, I have come to the conclusion that we need to restructure the COO domains to mirror the more focused nature of today’s Klarna.”

Confirming the changes made by Giesecke, a Klarna spokesperson said that the firm is “constantly evaluating and making adjustments to the structure of its organisation.”

Klarna is also considering re-posting people to other parts of the company, added the spokesperson.