Trustly to make 120 redundancies as four C-level employees depart
Payments firm instigates restructuring following company bloating as more than 10% of staff cut
Trustly is set to hand out 120 redundancies and see four senior management team members depart as part of a restructuring process.
According to reports in Sweden, the payments specialist is set to lay off 120 of its 900 employees, with most of the redundancies coming at the firm’s head office in Stockholm.
In terms of senior management, chief HR officer Ulrica Falkenberg, chief technology and product officer Karim Ahmad, group CTO Dave Andre and CFO Mats Backman are all set to leave the company.
The move comes after Trustly’s failure to list publicly on the Stockholm exchange for SEK80m following criticism from the Swedish Financial Supervisory Authority.
An additional reason provided was “company bloating” as described by the group CEO Johan Tjärnberg.
Tjärnberg only recently stepped into the role after serving as Trustly chair to replace Oscar Berglund.
Speaking to Dagens Industri, Tjärnberg said: “It is of course tough to fire people.
“But the organisation has become too similar to a large company with very many different layers and functions and we have lost the entrepreneurial spirit needed.
“Looking in the rearview mirror, I think we have gone wrong. Of course, I take responsibility for that, because I have been chairman during this period,” he added.
Trustly said the restructuring process would allow the firm to be the “game-changing market leader in Europe by the end of 2024”.
Trustly said: “Trustly is refocusing its geographical and product offerings and reducing structural complexities to better scale, capture growth opportunities.
“Following the setup of a new organisation in which the group functions are replaced with regional, more agile and customer-centric management teams, and a refocused European product offering, there will be redundancies in Europe, primarily in Stockholm.”