Online car retailer Cazoo announced on Thursday it will shut down its EU operations as it targets a return to profitability by the end of next year.
The company reported in August a £243m half-year loss, which prompted a review of its business.
Cazoo said its EU operations would require additional external capital, which is in contrast with Cazoo’s regime of cash preservation, while closing down would bring in a further £100m by the end of 2023.
It will instead focus on strengthening the UK side of business, as it is worth over £100bn annually with eight million transactions.
“Given our target of reaching profitability by the end of next year, we have taken the tough decision to focus solely on the huge UK used car market, worth over £100bn+ annually,” said chief executive Alex Chesterman.
According to Cazoo, the winding down in Germany and Spain will start soon, while it remains in consultation with union representatives in France and Italy.
The company first announced the redundancies in June, saying it was forced to axe 750 jobs to save over £200m as a result of the “rapid shift in the global economy.”
“I would like to thank all our colleagues in the EU who are impacted by this decision, and we will of course look to support them in every way possible.”
The announcement comes less than a year after the New York-listed company expanded operations in mainland Europe, launching its services in Germany and France in December 2021.
The car retailer then proceeded to make its debut in Italy and Spain following the acquisition of rivals Brumbrum and Swipcar for €80m (£66.8m) and €30m (£26m) respectively.
Cazoo also struck partnerships with different sporting teams, including Everton FC last season and Spanish football club Valencia in February.