Online car seller Cazoo has confirmed it will cut around 750 jobs across the UK and Europe.
The move will reduce the company's overall employee numbers by around 15%.
Cazoo, which is based in London, is looking to make savings of more than £200million by the end of next year, it said in a statement.
As well as axing roles, Cazoo said it will also slow new hiring as part of plans to reduce the size of its business.
The car firm - described as the Amazon of the vehicle dealership world, due to its promise of delivering a vehicle to your door within 72 hours - blamed rising inflation and interest rates for pushing up its costs.
Cazoo did not give a breakdown of which jobs will be cut, but it is understood that countries affected will be the UK, Germany, France and Italy.
It said in a statement: "The company is not immune to the rapid shift in the global economy and the possibility of a recession in the coming months.
"As a result, management's expectations for the full year are now more cautious, reflecting the weaker and uncertain external environment."
Founder and CEO Alex Chesterman said: "The combination of rising inflation and interest rates with supply chain issues caused by the pandemic and war has driven up the cost of living and hit consumer confidence.
"This perfect storm has placed cash conservation top of mind for the company, ahead of growth."
He continued: "The opportunity ahead of us remains as exciting as ever and we continue to see record sales levels, despite the challenging economic environment.
"However, we need to be laser-focused with our drive towards profitability and preservation of capital.
"We currently have a very strong balance sheet with over £400million of cash and over £200million of self-financed inventory and we believe that our business realignment plan will ensure that we are well-positioned to achieve our long-term targets and capture the enormous market opportunity."
Despite the gloomy jobs news, Cazoo said it still expects its sales to grow between 100% and 130% this year, with revenues forecast to increase by 110% and 125%.
Founded in 2018, Cazoo allows shoppers to purchase a car online before delivering the vehicle to their door in a matter of hours.
It keeps an estimated 1.500 second-hand cars in stock at any one time.
Cazoo listed on Wall Street in a deal valuing it at $7billion (£5billion) last year. The company has seen its shares plummet by 87% since then.
