Cazoo to cut 750 jobs in bid to save more than £200m
Around 750 jobs are to be cut by online car seller Cazoo in a bid to save more than £200m by the end of next year.
The company will reduce its number of employees in the UK and Europe in a move that would reduce its total by about 15%.
Cazoo, which was founded in 2018, headquartered in London and listed in America, said its costs have been driven up by rising inflation and interest rates.
The business said: “The company is not immune to the rapid shift in the global economy and the possibility of a recession in the coming months.
“As a result, management’s expectations for the full year are now more cautious, reflecting the weaker and uncertain external environment.”
Cazoo did not give a breakdown of where the jobs will go, but it is understood the bulk will be across its UK operations – its biggest division – as well as in its European bases in Germany, France and Italy.
Founder and CEO Alex Chesterman added: “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.
“This perfect storm has placed cash conservation top of mind for the company, ahead of growth.”
Cazoo said it still expects its sales to grow between 100% and 130% this year, with revenues forecast to increase by 110% and 125%.
In a statement, the business added that it will also slow new hiring.
Since the start of 2022, Cazoo’s shares have dropped by 79%.