Cinch Cars, the online used car trading platform owned by Constellation Automotive, revealed its plan to cut jobs and increase efficiencies. In a statement, Constellation Automotive stated, “Cinch today announced a 6% reduction of colleagues as it looks to drive efficiencies across its operations in line with its business plan. These changes are always difficult, and our main focus as ever is focusing on supporting impacted employees.”
Cinch is bracing for scaling but is dealing with losses. Cinch Cars posted pre-tax losses of £149.1m on turnover of £815.7m in the year till 3 April 2022. The company invested heavily in advertising to promote the brand, including sponsorship of the British Motor Show, sponsorship of the TV show Walk the line, sports sponsorship of Crystal Palace FC.
The company has been building scale over the years. The performance compares with losses of -£22m on turnover of £359.6m in the prior year, according to results filed at Companies House. At the end of the year, the company had net liabilities of £158.9m compared to £32.1m the prior year. According to accounts filed at Companies House, Cinch Cars had 295 employees.
