by Will Feuer
Kazoo Group Ltd said it plans to cut its workforce by about 15% and take other actions to slow expansion and focus on profitability, citing difficult macroeconomic conditions.
The British online car retailer said it expects about 750 existing jobs to be affected by its restructuring plans. The company said it would also slow down new hiring.
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“The company is not immune to the rapid turnaround in the global economy and the prospect of a recession in the coming months,” Kazuo said. “As a result, management’s expectations for the full year are now more cautious, reflecting a weak and uncertain external environment.”
Cashew is the latest high-growth business to curtail its ambitions and cut jobs in recent months amid fears of a recession linked to rising inflation and slowing economic growth. Still, the company said demand remains strong.
Kazoo said it plans to expand its cash runway beyond 2023 and accelerate the company’s path to profit. The plan includes reducing brand marketing and capital expenditures, while promoting purchaseability and reducing costs elsewhere.
“The combination of rising inflation and interest rates, along with supply chain issues caused by the pandemic and war, has impacted the cost of living and eroded consumer confidence,” said Alex Chesterman, chief executive of Kazoo. “This perfect storm has put cash conservation at the top of the line for the company, ahead of growth.”
The company said it still expects between 100% and 130% growth in retail unit sales for 2022. It added that revenue is expected to grow between 110% and 125%.
Write to Will Feuer at [email protected]
Credit: www.marketwatch.com /