Klarna’s Cutting Down In Hopes Of Turning A Profit Soon

about 2 months ago1:36 min

Klarna’s Cutting Down In Hopes Of Turning A Profit Soon

Buy-now-pay-later (BNPL) firm Klarna is still shedding cash, but it said on Wednesday that it’s getting closer to turning a profit.

What does this mean?

Klarna was the darling of Europe’s tech startup space not long ago, showered with praise and funding alike – but how the mighty have fallen. The global economy’s hit a rut now, and capricious investors have fixed their attention on companies that can actually turn a profit. And Klarna doesn’t, which could be why the firm’s valuation plunged from $46 billion to $7 billion in July. Since then, Klarna’s been proving skeptics right, racking up a $200 million loss last quarter, twice the sum at the same time last year. Now, though, Klarna’s determined to turn things around: the firm bid farewell to 10% of its staff back in May, and it

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