Online car retailer Cazoo to cut workforce by 15% to conserve cash (updated)

Cazoo

07/06/2022 12:06

(Adds details from the statement, forecast update, background)
    June 7 (Reuters) - Online car retailer Cazoo Group Ltd
 CZOO.N  said on Tuesday it would cut its workforce by about 15%
as it looks to conserve cash amid rising inflation and interest
rates as well as supply-chain issues.
    Chief Executive Alex Chesterman called it a "perfect storm"
for the European car retailer, which also announced a slowdown
in hiring among other measures to maintain liquidity.
   Last month, used-car retailer Carvana said it would lay off
about 2,500 employees, or 12% of its workforce.  urn:newsml:reuters.com:*:nL3N2X23MV
     A decades-high inflation and rising interest rates have
raised concerns about the world's biggest economy slipping into
a recession, according to several economic experts.
    However, Cazoo still expects annual revenue between 1.4
billion pounds ($1.75 billion) to 1.5 billion pounds, more than
double compared to a year earlier higher. 
    Under the realignment plan announced on Tuesday, Cazoo said
it will no longer offer its subscription service to new
subscribers from the end of June, given the highly cash
consumptive nature of the business model. 

($1 = 0.7992 pounds)

 (Reporting by Aishwarya Nair in Bengaluru; Editing by Anil
D'Silva and Arun Koyyur)
 ((Aishwarya.Nair@thomsonreuters.com; +91-8067494421;))