- Aug 30, 2004
"We believe these decisions, while extremely difficult, will result in Carvana restoring a better balance between its sales volumes and staffing levels and facilitate Carvana returning to efficient growth on its mission to change the way people buy and sell cars," the company said in the filing.
The layoffs relate to “recent macroeconomic factors that are significantly impacting automotive retail,” a Carvana spokesperson said in a statement.
They come just weeks after Carvana reported a $506 million loss in the first quarter as high used-vehicle prices, rising interest rates and other issues affecting the auto industry dented sales. It felt higher costs and a lower profit per vehicle than expected.
It’s not just Carvana taking a hit in the tumultuous market. Digital retail companies that received a long period of boosted sales and elevated customer interest during the COVID-19 pandemic are now seeing some cooldown, and it’s reflecting in their earnings.
Carvana to lay off 2,500; executives to forgo salaries for rest of year
Carvana is laying off 12 percent of its work force and executives won't take salaries for the rest of the year.