Around 750 jobs are being axed at online car seller Cazoo across the UK and Europe as it looks to cut costs by more than £200million by the end of next year.
The British group, which is listed in America, has said it plans to slash its workforce by about 15% and also slow down on hiring new staff under a major cost-savings drive, as it warned over recession fears and consumer cutbacks.
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.
The group said the “business realignment” was needed to protect profits in the face of tougher economic times.
But it also comes as firms such as Cazoo have seen online car sales dwindle as pandemic restrictions have been lifted, with used car dealer Carzam collapsing late last week.
Cazoo 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 founder and chief executive 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.”