Carvana (CVNA) to lay off 8% of workforce amid 'strong headwinds' - Phoenix Business Journal

Tempe-based Carvana Co. has slashed 8% of its workforce, which amounts to roughly 1,500 workers. It's the second major round of job cuts announced by the online used-car retailer this year.

The impact the layoffs will have on the Valley workforce for Arizona's third-largest public company isn't immediately known. In a document obtained by the Business Journal from a person familiar with the matter who asked not to be identified, Carvana CEOThe 1,500 job cuts will impact"many corporate and technology teams as well as some operations teams where we are eliminating roles, locations or shifts to match our size with the current environment.

Employees affected by the latest round of job cuts will receive severance pay through Jan. 1, 2023 with an additional week of severance pay for every full year with the company; cash value of unvested equity awards; priority consideration when the used car retailer begins hiring again, among other severance benefits, according to the letter.

"It is fair to ask why this is happening again, and yet I am not sure I can answer it as clearly as you deserve. I think there are at least a couple of factors. The first is that the economic environment continues to face strong headwinds and the near future is uncertain. This is especially true for fast-growing companies and for businesses that sell expensive, often financed products where the purchase decision can be easily delayed like cars.

The company has faced tough sledding on Wall Street in 2022 despite a $2.2 billion acquisition of U.S. auto auctioneer Adesa deal earlier this year. When the stock market opened on Jan. 3, CVNA shares were trading at $234.38. Carvana opened trading Friday at $8.59 a share, which has since fallen to $7.80 amid the news of the job cuts.

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