If there was any additional proof needed of the commonplace nature of drugs in the everyday lives of Generation Z: Swedish fintech giant Klarna will introduce alcohol and drug testing for employees in Sweden starting January 2025. The move, part of a broader security initiative, comes as Klarna prepares for its highly anticipated IPO in the United States.
Key Points:
- Drug Tests Begin January: Klarna employees in Sweden will undergo random alcohol and drug tests starting January 2025, conducted by an external provider.
- IPO Preparations: The tests aim to strengthen internal security as Klarna gears up for its planned IPO in the U.S., following confidential SEC filings in November.
- Industry Standards: Klarna HR head Mikaela Mijatovic said the move aligns with growing trends in the fintech and banking industry, where such testing is becoming standard practice.
- Global Expansion: Klarna plans to expand employee testing to other countries, complying with local laws and regulations.
- CEO Rationale: CEO Sebastian Siemiatkowski cited increasing risks from criminals and hacker groups, emphasizing additional measures like employee monitoring and financial reviews for sensitive positions.
Short Narrative:
Klarna, once Europe’s most valuable startup, is ramping up internal security as it prepares for a highly anticipated U.S. IPO. Business Insider revealed that Klarna will implement alcohol and drug testing for employees in Sweden starting January 2025. The move, confirmed in an internal Slack message by Klarna’s HR head Mikaela Mijatovic, is part of a larger security push designed to align with industry standards and address emerging risks.
CEO Sebastian Siemiatkowski had first floated the idea in September during an all-hands meeting, citing growing concerns over Klarna‘s exposure to criminal activity and hacker threats. According to a meeting recording, Siemiatkowski suggested the company must adopt new security measures, including employee location monitoring and financial reviews for senior positions.
Mijatovic’s message also hinted at further steps, such as tightening controls over company devices and external data sharing. Klarna plans to roll out similar testing initiatives in other countries in compliance with local regulations.
The Swedish fintech firm, a leader in the Buy Now, Pay Later (BNPL) space, confidentially filed for its IPO with the SEC in November 2024, signaling its move to enter U.S. public markets. Klarna’s renewed focus on employee security reflects its strategy to present a robust and compliant operation ahead of the listing.
Actionable Insight:
Klarna’s introduction of drug testing and other security protocols highlights a growing trend among fintech companies to enhance internal compliance and risk management, particularly in the pre-IPO phase. The move sets a precedent for other high-profile fintechs navigating regulatory scrutiny and increasing cybercrime risks.
If you like to take drugs or alcohol to relax, then Klarna and other FinTechs are probably not the right employers for you. Interestingly, the late Apple founder Steve Jobs was a self-confessed drug user.