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Klarna boss puts brave face on buy now, pay later problems

Europe’s most valuable private tech business forced to cut staff as losses mount

It would be easy to assume that Klarna chief executive Sebastian Siemiatkowski is feeling downbeat after the company’s first large-scale job cuts, reports of a big fall in its valuation and general questioning of its buy now, pay later business model.

But although he admitted to being “quite exhausted” by recent events, the 40-year-old chief executive and co-founder of Europe’s most valuable private tech business also insisted: “I’m very, very optimistic.”

Klarna polarises like few other businesses. Critics say it encourages vulnerable consumers — often young people — to buy things they do not need with money they do not have. To enthusiasts, the buy now, pay later options it offers make life easier for shoppers and retailers. It has also set its sights on the retail banking industry.

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