Online used car retailer Cazoo has blamed customers buying cheaper cars for its decision to cut jobs and reduce investment, ending a breakneck sprint for growth at the start-up.
“We are starting to see an impact on consumer confidence and a marginal shift in the type of cars people are looking for as cost of living starts to bite,” founder and CEO Alex Chesterman said in a call to investors on Tuesday. “We are assuming things don’t get any better and potentially get worse, which is why we are being cautious.”
Cazoo on Tuesday announced 750 job cuts, amounting to a total headcount reduction of 15%, the end of its subscription services and cutbacks to its ferocious marketing campaign.
The company was already hurting from a recent fall in its share price, which cut the valuation of Cazoo from a heady $7 billion (£5.58bn)