Klarna plans to close down three offices ahead of IPO

Klarna intends to close down offices in Amsterdam and Mannheim by the end of 2025, as well as has decided against renewing the lease of its office in Columbus, Ohio by the end of March 2027. Initially, the company opened its Columbus office in 2014 to support the launch of its US expansion. Now, the cuts sum up to over 50.000 square feet of commercial real estate. Commenting on the news, representatives from Klarna mentioned that, as part of their company’s strategy to scale operational efficiency, utilise AI, and minimise administrative costs in the business, it decided to reduce the size of its office space.

Klarna to shut down three offices ahead of IPO

Furthermore, Klarna leases offices in three other cities in Germany, its base in Denmark, and its headquarters in Stockholm, maintaining membership agreements for co-working spaces in a minimum of 10 other locations worldwide. The three offices planned to be closed are among the smallest locations it leases besides its Denmark outpost. At the time of writing, Klarna declined to comment any further on the matter.

Klarna’s US IPO

The decision to shut down these offices comes just a day after Klarna publicly filed a registration statement on Form F-1 with the US Securities and Exchange Commission related to a proposed IPO. The number of shares intended to be provided and the price range for the offering had not been determined. The company also applied to list its ordinary shares on the New York Stock Exchange under the symbol ‘KLAR’. Additionally, Goldman Sachs & Co. LLC, J.P. Morgan, and Morgan Stanley were set to serve as joint book-running managers, with BofA Securities, Citigroup, Deutsche Bank Securities, SOCIETE GENERALE, and UBS Investment Bank acting as bookrunners.

Klarna to shut down three offices ahead of IPO

Klarna’s US IPO