Online car marketplace Cazoo has announced that they are cutting 750 jobs across the UK and Europe. Like many other companies, Cazoo is also feeling the heat of recession and consumer cutbacks. Moreover, the car seller company is planning to reduce their costs by $200 million by the end of next year.
Most job losses across UK operations
The US-listed British automotive supplier has planned to reduce its workforce by about 15 per cent. In addition, they also plan to slow down on new hiring under the cost saving strategy. It is understood the majority of the job losses will be across its UK operations which is their largest division. Moreover, the restructuring will also affect jobs at their European bases. Cazoo is realigning their business to protect their profits during these crunch economic times.
“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 said in their statement.
Shutting down of sites
Cazoo is planning to shut two of its 10 vehicle preparation sites. In addition, whey will also close one of their 21 customer support centers in Leeds. Alongside, they also have plans to cut back its center in Southampton. Currently, their London-headquartered group is employing 5,000 staff in total.
Sales are down
Cazoo is termed as the Amazon of the used car market. They make buying or selling a car as easy as ordering other products online. The consumers can seamlessly buy, sell, finance or subscribe to a car entirely online for delivery. Moreover, they may receive their cars in as little as 72 hours. However, the Cazoo have seen online car sales dwindle. The used car dealer Carzam collapsed a few weeks ago. “The company is not immune to the rapid shift in the global economy and the possibility of a recession in the coming months,” Cazoo added in their statement.
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