Online car dealership Cazoo (CZOO) is axing around 750 jobs across the UK and Europe as part of a major cost-cutting programme aimed at saving £200m by the end of next year.
Cazoo, which was founded in 2018 and is based in London but is listed in America, has said it plans to slash its workforce by about 15% and slow the pace of new hiring, delay a number of planned investment projects and slow near-term growth aims as part of the cost-savings drive.
Cazoo did not give a breakdown of where the jobs will go, but the bulk will be across its 4,000-strong UK employee base, as well as in Germany.
Jobs will also be cut across its other European divisions in France, Spain and Italy. The group has around 5,000 staff in total.
The group said the “business realignment” was needed to protect profits in the face of tougher economic times.
Cazoo shares have dropped by 79% this year.
Cazoo also warned over recession fears and consumer cut backs.
“The combination of rising inflation and interest rates with supply chain issues caused by the pandemic and war has driven up the cost of living and hit consumer confidence," said founder and CEO Alex Chesterman.
“This perfect storm has placed cash conservation top of mind for the company, ahead of growth. We have proven that we can buy and sell cars at scale and deliver a market-leading customer experience, but in the current climate we are focused on improving our unit economics which involves making some tough but necessary decisions around our priorities.”
Last year, the company listed on Wall Street in a deal valuing it at $7bn (£5bn) just over 12 months after its launch.
The company had agreed to go public via a merger with a so-called "blank cheque" company in New York led by billionaire US investor Dan Och.
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