Car retailer Cazoo to cut 750 jobs in push for profit

CAR retailer Cazoo plans to cut 750 jobs as it seeks to deliver £200m in savings to combat a knock to consumer confidence triggered by the cost of living crisis.

Cazoo intends to axe 15pc of its workforce so it can try to become profitable by the end of next year even as the country risks falling into a recession.

The company is also reducing its marketing spending and delaying planned investments to save on costs. It will examine how to cut costs by renegotiating contracts with the companies in its supply chain.

Cazoo’s chief executive Alex Chesterman, the entrepreneur who founded Zoopla, said the company was making “some tough but necessary decisions” to prioritise profit targets over growth.

The shake-up comes after Mr Chesterman was accused of failing to do his job properly by a rival, which has now gone bust. The boss of rival car dealer Carzam said his company failed because it struggled to get funding owing to the slide in Cazoo’s share price.

Cazoo listed in New York last year at a valuation of around $7bn (£5.6bn). But its share price has plummeted and it is now worth around $974m.

Cazoo’s management are no longer confident they will meet financial targets for the full year owing to “the weaker and uncertain external environment”. Car dealers have struggled with a sharp decline in used car sales since the end of lockdown. The Society of Motor Manufacturers and Traders reported used car sales declined by 6.8pc in March.

Cazoo will also close its subscription service at the end of June, which allows customers to pay monthly for their car.