The bulk of job cuts are expected to take place in the UK, but France, Germany, Spain and Italy will also be affected.
British online car seller Cazoo announced on Tuesday that it would cut 750 jobs in the UK and Europe, around 15% of its workforce, to cope with soaring costs and the threat of a recession. . The group listed in New York wants to save more than 200 million pounds by the end of 2023. It fell 7.03% to 1.19 dollars at the opening of Wall Street.
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The bulk of job cuts are expected to take place in the UK, its biggest market, and Germany, but France, Spain and Italy will also be affected. Cazoo has seen its sales suffer as dealerships reopen after post-pandemic lockdowns, with used-car seller Carzam notably going out of business last week. “The company is not immune to the rapid change in the global economy and the possibility of a recession in the months ahead“, underlines the company in a press release. “The combination of rising inflation and interest rates with supply chain problems caused by the pandemic and the war (in Ukraine, editor’s note) has raised the cost of living and lowered consumer confidence”, also commented the founder and general manager of Cazoo Alex Chesterman.
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The company will also reduce its marketing expenses, its investments, reduce customer service, among various cost-saving measures. Cazoo lowered its sales forecast for the coming year in the face of a darkening economic outlook. He is now counting on sales of between 70,000 and 80,000 vehicles over the year, which would remain a sharp increase, of 100 to 130% over one year. Cazoo, founded in 2018 and experiencing rapid growth, went public on Wall Street last year by opting for a SPAC, a listed ad hoc vehicle, shunning the City of London. Since its inception the company has sold 70,000 cars with revenue of some £665m last year. The online used car sales sector is very competitive with AutoHero, Aramis, Driverama, who are fighting a fierce battle.
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